JPMorgan: Strait of Hormuz Congestion Could Push Oil Prices to $120 Level

JPMorgan analysts stated that there is a significant upside risk for oil prices if the logistical congestion in the Strait of Hormuz persists. If the strait does not open at full capacity by July, an additional increase of $15 to $20 per barrel is anticipated. The continued stranding of hundreds of ships in the region is leading to constraints in global oil supply. This situation is tightening the supply-demand balance in the market, creating upward pressure on prices. Analysts highlighted that if current conditions continue, the likelihood of oil prices retesting the $120 per barrel levels seen during past crisis periods has increased. This potential scenario is considered a significant risk factor for global energy markets. The Strait of Hormuz is a critical waterway through which a substantial portion of the world's oil trade passes. Prolonged disruptions here have the potential to create widespread impacts on energy prices and the global economy. Not investment advice.