London: August could mark a tipping point for much higher oil prices if demand rises and the Iran war supply crisis persists, an Abu Dhabi state oil company executive said on Tuesday, adding it could take up to a year for supply chains to recover even after flows normalise. Transit through the Strait of Hormuz will remain partial and below pre-war levels as long as uncertainty over peace persists, Philippe Khoury, ADNOC's executive vice president for sales and trading, told the Middle East Petroleum and Gas Conference in London."It's not going to resume like a flip of a switch," Khoury said, adding that some elements of the supply chain would take weeks to restore and others months, with a full return to pre-war conditions potentially taking until mid-2027. ADNOC CEO Sultan Al Jaber said last month there would be no full return of Hormuz flows until the first or second quarter of 2027.Economies have been shrinking demand, and if they continue to do so, prices could stay around $100 a barrel, Khoury said. But if demand recovers and the crisis extends, August could be the tipping point for much higher prices, he added.Also Read: The Iran war is pushing the global gas trade into the shadowsIt was not clear how much further demand can shrink, he said."I think the way we see things today, it's difficult to predict a very bright, you know, outcome," he said of prices.Also Read: Why Asia's oil lifeline can't survive on US crude alone
ADNOC trading chief Philippe Khoury flags August as tipping point for oil prices if Iran war supply crisis persists
Oil prices may surge significantly in August claimed ADNOC's chief. This could happen if demand increases and the Iran war supply issues continue. Experts suggest it might take a year for supply chains to fully recover. Transit through the Strait of Hormuz will remain affected as long as peace remains uncertain.
ADNOC flags August as potential oil price surge point if Iran war continues; supply recovery extends to mid-2027. Volatile energy costs through 2027 pressure cloud and data center budgets, requiring IT teams to adjust strategic spending plans.









