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Hormuz Closure Threatens Summer Energy Crisis as Oil Flows Plummet

Crude throughput via the Strait of Hormuz collapsed nearly 30 percent in the first quarter of 2026. Flows dropped by roughly 6 million barrels daily as the critical chokepoint remained effectively shuttered for nearly three months.

The prolonged blockade has roiled global energy markets, with traders monitoring two key factors heading into the scorching Asian summer: potential diplomatic breakthroughs and weather patterns that could further strain supply.

Negotiations over reopening the strait have created volatility, with oil prices swinging on shifting diplomatic signals. Market participants remain deeply uncertain whether conditions will stabilize before peak seasonal demand season arrives in Asia.

The supply shock threatens to compound existing logistical pressures across freight networks dependent on stable fuel costs, with industry observers warning that extended closure could trigger significant cascading effects across global commerce.