Experts warn Strait of Hormuz closure could spark 2008-style shock
Business
If the Strait of Hormuz, a key route for the world's oil, stays closed past July, experts say we could see an economic shock that comes close to 2008.
Rapidan Energy Group warns that oil supply shortages might force a rare drop in worldwide oil use by 2026, and prices could spike to $130 a barrel if things don't reopen soon.
Hormuz closure deepens Q3 oil deficits
If the closure drags into August, oil shortages could get even worse as the third-quarter supply deficit deepens.
Even after reopening, markets would likely stay tight for a while due to delayed shipments.
While today's economies rely less on oil than before, Rapidan points out that high prices can still mean more inflation and slower growth, so it's something everyone should keep an eye on.