Full oil flows through the Strait of Hormuz will not return before the first or second quarter of 2027, even if the Middle East conflict ended now, the head of the United Arab Emirates’ state oil firm ADNOC said.
The outlook is among the most pessimistic by top industry executives and underscores the prolonged economic impact of the Iran war which has triggered what the International Energy Agency has called the largest ever energy crisis because of the near closure of the strait.
For all the latest headlines, follow our Google News channel online or via the app.
Iran has established de facto control over the waterway, a chokepoint for about a fifth of the world’s oil supply. The resulting surge in energy prices has pushed inflation higher and fanned fears of an economic downturn.
“Even if this conflict ends tomorrow, it will take at least four months to get back to 80 percent of pre-conflict flows, and full flows will not return before the first or even second quarter of 2027,” ADNOC CEO Sultan al-Jaber said during a Atlantic Council event on Wednesday.
