LONDON, 07 April. - (ANA) - The Strait of Hormuz closure is causing a loss of about 11 million barrels per day, over 10% of global oil supply, creating a major supply shock unlike the 2020 COVID demand collapse. 

 

This inflexible short-term supply reduction will drive significant price increases, raising transport costs and slowing economic activity worldwide. 

 

Developed countries can temporarily mitigate impact using emergency reserves, but these are limited, and developing nations face severe risks of inflation, food price spikes, and economic instability. 

 

Diesel and jet fuel shortages would appear first, disrupting transportation, agriculture, and trade. Protectionist measures, such as export restrictions, risk worsening the crisis by tightening global markets further. 

 

Prolonged disruptions could have broad economic consequences beyond fuel, affecting petrochemicals, food production, and industrial sectors, potentially causing a deeper global economic shock than COVID-19.   - (ANA) -

 

AB/ANA/07 April 2026 - - -