Concerns about Iran potentially blocking the Strait of Hormuz and disrupting global oil supplies may be overstated, according to experts. The strait is vital for about 20% of global oil shipments, and fears of a blockade have sparked anxiety in the crypto market. However, experts argue that a complete blockade is unlikely due to geographical impracticalities and Iran's own economic interests.
Economist Daniel Lacalle highlighted that Iran produces 3.3 million barrels of oil daily, and blocking the strait would harm its own economy. Additionally, the shipping lanes are primarily in Omani waters, making a blockade difficult. Energy expert Dr. Anas Alhajji noted that despite past conflicts, the strait has never been fully blocked due to its width and protection. While a full-scale conflict could impact markets, the probability of a blockade remains low.
Experts Downplay Fears of Iran Blocking Strait of Hormuz
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