With Middle East tensions starting to flare up again, experts have warned that tolls in the Strait of Hormuz look more of a certainty.
With Middle East tensions starting to flare up again, experts have warned that tolls in the Strait of Hormuz look more of a certainty. Some concern has been raised about the impact this could have on international oil prices.
Financial advisory giant deVere Group’s CEO Nigel Green said that this follows Monday’s biggest one-day surge since the pandemic era, with Brent crude climbing further past $85 (R1389) a barrel on Tuesday after President Trump announced a 20% fee on cargo transiting the strait, alongside a renewed naval blockade of Iranian ports.
“Whoever wins this fight over the toll, the bill lands on everyone else. About a fifth of the world’s oil and gas moves through Hormuz. Add a 20% charge on that and you’ve taxed global energy, full stop, no matter whose flag is on the toll booth,” added Green.
Green stated that two governments are fighting over who gets to run the toll booth. “The rest of the world just pays whoever wins.”
