Expert Highlights Importance of Hormuz Strait in Energy Price Stability

Hamad Hussain of Capital Economics has emphasized the critical role of the Hormuz Strait in maintaining stable energy prices. According to Jin10, Hussain noted in a report that while the release of strategic oil reserves by International Energy Agency (IEA) member countries may alleviate some pressure on oil prices, it cannot substitute for the reopening of the Hormuz Strait. He explained that if the conflict with Iran ends soon, releasing 300 to 400 million barrels of reserves might fully offset the supply loss. However, the speed at which IEA member countries can provide emergency crude to the market is insufficient to simultaneously cover the supply gap in the Middle East. Hussain concluded that reopening the Hormuz Strait is key to sustainably lowering energy prices.