Oil supply crunch intensifying as Hormuz stays shut — load up on US oil producers
The Strait of Hormuz—the narrow waterway that carries roughly a fifth of the world's oil—has been shut down since the Iran war began in February. Now Exxon is warning that global oil stockpiles will soon hit crisis lows, with prices potentially spiking to $150–160 a barrel.
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The Strait of Hormuz shutdown has been choking off roughly 20% of the world's daily oil flow since February, and we're now at the point where storage tanks are running dry. An Exxon executive just predicted Brent crude could rocket to $150–160 per barrel once inventories hit all-time lows in the coming weeks. Even if a US-Iran ceasefire materializes, analysts say the era of cheap $60 oil is over because the damage to supply chains is already done. US-based oil producers like Exxon, Chevron, and Occidental stand to reap massive windfall profits because they don't depend on Middle Eastern shipping routes—every dollar oil climbs above their break-even costs drops straight to the bottom line.