Hormuz Crisis: Choking the World's Energy Supply Chain

The Strait of Hormuz crisis is threatening the global oil supply chain. With the U.S.-Iran interim deal in tatters, shipping traffic dropped 66.2% over three weeks. On July 16, only 8 vessels transited, compared to the usual 138. Iranian attacks on ships and a new U.S. blockade have forced all vessels to halt. BIMCO's security chief Jakob Larsen warned that the traditional middle lane remains too hazardous due to mine threats. Oxford Economics suggests a transit fee system for Hormuz, which could generate $6.8 billion annually for Iran and Oman. Meanwhile, MENA investment banking activity fell 19% last week, with IPOs hitting their lowest level since 2018. JPMorgan retained its 9.4% share lead, but the U.S.-Iran tensions are already dimming bankers' hopes for a summer rebound.