Question 1

What happens if the Strait of Hormuz closes?

Accepted Answer

The Board's analysts model closure scenarios across 30, 90, and 180 day windows, tracking oil price spikes (typically 20-50% within 72h), LNG market disruption, fertilizer cascade effects on global food prices, and the cascading impact on shipping insurance rates that historically rise 15-20x normal during Gulf crises.

Question 2

How much oil flows through the Strait of Hormuz?

Accepted Answer

Roughly 20% of global oil consumption transits the Strait of Hormuz daily — about 17-21 million barrels per day depending on the quarter. Saudi Arabia, UAE, Iraq, Kuwait, Qatar, and Iran all export crude or LNG through this single chokepoint.

Question 3

Are there pipelines that bypass the Strait of Hormuz?

Accepted Answer

Yes, but they're not enough. The Board's energy analysts have detailed why the 5 existing bypass pipelines (Saudi East-West, ADCOP, Iraqi-Turkish, Goreh-Jask, and others) can only handle ~15% of normal Strait throughput, leaving 85% of Gulf exports stranded if Hormuz closes.

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