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What happens if the Strait of Hormuz closes?
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.
How much oil flows through the Strait of Hormuz?
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.
Are there pipelines that bypass the Strait of Hormuz?
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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