Strait of Hormuz choked for months, tankers may not return — ride the oil supply squeeze with Exxon and Chevron
The Strait of Hormuz — the narrow waterway that handles about one-fifth of the world's oil — has been effectively blocked for over three months. Huge tankers are stuck and may avoid the route even after reopening, squeezing global oil supply.
Idea
The Strait of Hormuz has been blocked for over three months, and energy experts now doubt the giant tankers that usually move Middle Eastern crude will return in the same numbers even if the waterway reopens. That means less oil reaching the market for the foreseeable future, which tends to push prices up. Big U.S. oil producers like ExxonMobil and Chevron benefit directly from higher crude prices because their profit margins widen. With Iran tensions escalating and no peace deal in sight, this supply squeeze could persist through the summer driving season when demand is already seasonally strong.