Morgan Stanley: Oil Could Hit $150 if Strait of Hormuz Closes

In a new report, Morgan Stanley analyzed a scenario where oil prices could rise to $150 if the Strait of Hormuz closes. The analysis noted that if the strait remains closed beyond June, the 9.3 million barrel buffer protecting global markets from price increases could collapse. The report emphasized that the Strait of Hormuz accounts for about one-fifth of the world's oil supply, and the closure of this strategic passage would lead to supply disruptions. Morgan Stanley predicts that oil prices could surge to $150 in the short term in such a scenario. Analysts pointed out that current global oil inventories and OPEC+'s spare capacity may be insufficient to offset such a disruption. It was stated that the daily supply surplus of 9.3 million barrels would be quickly depleted if the strait remains closed for an extended period. Morgan Stanley's report once again highlights the impact of geopolitical risks on oil markets. Investors are advised to be cautious about potential developments in the Strait of Hormuz. This is not investment advice.