Expert Warns of Potential Energy Flow Disruption Amid Iran Conflict

Vikas Dwivedi of Macquarie Group has highlighted concerns over energy flow disruptions through the Strait of Hormuz amid ongoing conflicts involving the U.S. and Iran. According to Jin10, Dwivedi noted that the duration of the conflict remains a critical factor for energy markets. He emphasized the importance of monitoring the limited strikes on energy infrastructure. Dwivedi stated that while the world could manage a closure of the Strait of Hormuz for one to two weeks, the impact on oil prices would escalate rapidly in the third week and become severe by the fourth week. This is attributed more to delivery capacity issues than to a lack of global inventory and strategic petroleum reserves.