Oil prices will likely climb in response to a US blockade in the Strait of Hormuz, exacerbating already slowed oil transports.
“If we have a blockade, we still have the problem of a shortage in the market of about 7 million barrels of crude, 4 million barrels of product not getting out. And we just added to that by making the Iranian barrels off the market,” Karen Young, a senior scholar at Columbia University’s Center on Global Energy Policy.