The New York Times: Hormuz Strait Blockade Gradually Absorbed by the Market

BlockBeats News, June 4, according to The New York Times, even if the United States and Iran reach a peace agreement in the future, it may still take a considerable amount of time for the Hormuz Strait to resume normal shipping operations. Due to heightened security risks and a significant increase in war insurance costs, global energy trade is unlikely to return to pre-war levels in the short term. Oil-producing countries such as the United States, Canada, Brazil, Kazakhstan, and Venezuela are increasing crude oil production, and the U.S. Strategic Petroleum Reserve (SPR) continues to release stockpiles to alleviate supply shortages. Meanwhile, Saudi Arabia and the UAE are diverting part of the transportation demand originally reliant on the Hormuz Strait through land-based oil pipelines. However, the Gulf region's economy remains under significant pressure. Qatar's liquefied natural gas exports are highly dependent on the Hormuz Strait, and the International Monetary Fund (IMF) estimates its economy may shrink by about 9% this year; the overall economic growth forecast for Gulf countries has also been significantly downgraded. Restricted energy supply has driven up prices for natural gas, fertilizers, and food, further exacerbating global inflationary pressures. However, as the market seeks alternative supply sources, adjusts consumption structures, and gradually releases new production capacity, the impact of the Hormuz crisis on the market is shifting from a short-term shock to long-term risk pricing. In the future, market focus may return to liquidity, interest rate policies, and global economic fundamentals. [Original Link]