Global oil prices could rise by as much as US$16 per barrel if additional charges are imposed on cargo vessels passing through the Strait of Hormuz, according to market analysts. The strategic waterway handles around 20% of the world’s oil supply, making it one of the most critical energy routes globally.
Analysts warned that any new transit fees or restrictions would increase shipping and insurance costs, adding further pressure to global energy markets already affected by geopolitical tensions in the Middle East. These extra costs are expected to be reflected in higher crude oil prices.
A prolonged disruption in the Strait of Hormuz could also tighten global oil supplies and contribute to higher fuel prices, transportation costs, and inflation in many countries that rely on imported energy. Market participants are closely monitoring developments, as any escalation could have a significant impact on the global economy.
