Will the Rising Tension in the Strait of Hormuz Force the Oil Market into a Disruption?

The critical importance of the Strait of Hormuz is extremely significant for global oil trade. Iran's statement that it will not give passage to the United States has further escalated the rising tension in the region. As of now, oil prices appear to have peaked. However, the real question is: Will Iran's stance force the oil market into a squeeze? In my opinion, this situation should drive prices even higher.

While the Strait of Hormuz carries 20 million barrels of oil every day, how will Iran's stance affect global oil? As a member of OPEC+, Iran is a power that controls oil production. However, the decision not to give passage to the United States could reduce Iran's capacity to sell its oil to other countries. This situation could send prices soaring.

Copper mine strikes in Chile and supply shocks in the lithium/cobalt supply chain, which is critical for electric vehicles, could push oil prices even higher. Therefore, the tension in the Strait of Hormuz will force the oil market into a squeeze. Iran's decision not to give passage to the United States could make the global oil market even more complicated.