Goldman Sachs warns Strait of Hormuz tensions slow oil recovery
Goldman Sachs says new tensions in the Strait of Hormuz are making it tough for Middle Eastern oil supplies to bounce back.
Even though some oil wells have reopened, the region is still producing way less than before the war.
Recent clashes between the US and Iran have slowed down ship traffic through this key waterway, briefly sending oil prices above $80 a barrel.
Tanker attacks cut Persian Gulf flows
Goldman analysts pointed out that tanker attacks near Hormuz dropped oil flows through the Persian Gulf to just 70% of normal, down from over 80% earlier this year.
Things got even messier after President Trump scrapped an interim U.S.-Iran peace deal and blocked Iranian oil sales on July 8.
If talks go well, supplies could recover by late July, but more tension or failed negotiations might make things worse.