Hormuz Strait | FGE: Closure to last an additional 6 to 8 weeks, resulting in astronomical losses in scale

SighingCashier · 2026-03-31T13:51:21+00:00

Energy consulting firm FGE predicts that if the Iran war leads to the continuous closure of the Strait of Hormuz for 6 to 8 weeks, crude oil prices could surge to $150 or $200 per barrel, with enormous losses. One hundred million barrels of oil per week would be unable to pass, and the market would be paralyzed by supply disruptions, causing prices to rise. The conflict between the United States and Iran is ongoing, affecting oil supplies in the Persian Gulf.

SighingCashier

2026-03-31 13:51:21

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Energy advisory firm FGE said that if the near-shutdown of the Strait of Hormuz persists for another 6 to 8 weeks due to the Iran war, crude oil prices could surge to
$150 or $200 per barrel, and the losses would be astronomical.

FGE founder Fereidun Fesharaki told Bloomberg Television that every week, 100 million barrels of oil cannot pass through—meaning 400 million barrels per month—and that over a period of time, these market losses would be astronomical.

He pointed out that verbal intervention has limited effect, including remarks by U.S. President Donald Trump about possibly ending the conflict. In political terms, saying anything is of no use. The reality of a supply disruption will ultimately push up prices. The market will grind to a halt, and prices will rise.

As the war among the United States, Israel, and Iran sweeps through the Middle East, oil prices keep climbing. The Strait of Hormuz is nearly closed, with only a few vessels able to pass, and the Persian Gulf oil-producing countries have also shut down supply of several million barrels per day.

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