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Hormuz Strait Crisis Leaves Global Energy on Shaky Ground

According to Neil Atkinson, a seasoned energy expert and former senior official at the International Energy Agency, the world remains far from recovery following the Hormuz Strait crisis. Even a swift reopening of the critical waterway would not immediately restore normal energy flows, he cautioned.

Atkinson pointed out that numerous tankers currently stranded on either side of the Strait could potentially resume their journeys if free movement were to resume immediately. However, the analyst emphasized that production facilities in key oil-producing nations such as Saudi Arabia, Iraq, Kuwait, and Abu Dhabi have been forced to shut down, which could take several days or even longer to fully recover.

The expert also highlighted the significant disruption to liquefied natural gas (LNG) exports from Qatar, warning that recovery in this sector could take weeks, even under the most optimistic scenario. Atkinson underscored the far-reaching implications of the crisis, noting that oil plays a crucial role in various industries worldwide. “Everything, to a greater or lesser extent, relies on oil,” he observed.

Furthermore, Atkinson sounded the alarm on the long-term risks to global food production, citing the potential impact of fertilizer shortages. He warned that the lack of availability of fertilizers could have a ripple effect on food yields, emphasizing the severity of the problems at hand.

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