Strait of Hormuz Reopening: Not an Instant Fix for Global Energy Crisis

• The Strait of Hormuz, vital for global oil and gas, has been choked since February 28 due to ongoing conflict involving the US, Israel, and Iran.
• Iran claims the strait is open to all except the US, Israel, and allies, but reports indicate blockades, requiring permissions and fees, and attacks on vessels.
• The US is deploying significant air power and naval forces to the region while also claiming talks are underway with Iran for a ceasefire and reopening of Hormuz.
• Even if the Strait reopens today, the global energy crisis will not instantly resolve due to weeks of closure, crippled energy infrastructure, and logistical challenges.
• Market prices may react quickly, but physical supply chains, damaged refineries, and elevated war-risk insurance will take weeks to months to normalize, impacting global industrial and food supply chains.