Dustin Meyer

Oil and gas prices have hit their highest level in years directly due to the conflict and the closure of the Strait of Hormuz. The API SVP stated the disruption's impact is a "function of scale times duration," with duration being the unanswered question. The Strait of Hormuz is a irreplaceable chokepoint for global seaborne oil and LNG trade. A physical blockage or high-risk premium for transit directly constrains supply and injects volatility into global benchmark prices. Every day the Strait is not fully open extends the period of market stress. WATCH Oil & Gas. Prices are directly tethered to geopolitical developments in the region. The market is currently pricing in significant disruption risk, which could intensify if the U.S. ultimatum passes without the Strait reopening or if infrastructure like Qatari LNG facilities sustain long-term damage. Iran capitulates to the U.S. ultimatum and reopens the Strait fully within the 48-hour window, leading to a sharp correction in prices as the immediate disruption threat eases.