Global energy markets face supply shortages following Persian Gulf conflict

A report by The Economist indicates that global energy markets are approaching a critical shortage after 50 days of conflict in the Persian Gulf. Approximately 550 million barrels of oil, representing nearly 2% of annual global production, have been lost due to the closure of the Strait of Hormuz. While oil prices have remained relatively stable, analysts warn this was due to existing inventories that were in transit before the conflict began. These buffers were depleted in April, leaving no cushion for ongoing supply shocks. Additionally, the closure of the Strait results in a monthly loss of 7 million tons of LNG, which also accounts for 2% of the global supply. Market experts conclude that the lack of reserves makes the sector highly vulnerable to further instability. The situation suggests that the period of calm in energy pricing may be coming to an end.