Strait of Hormuz Crisis Shakes Global Energy Supply
Iran Threatens Full Closure of Key Oil Route
Iran said the Strait of Hormuz, crucial to oil exports and global energy flows, would be “completely closed” immediately if the U.S. follows up on President Donald Trump’s threat to attack its power plants. Trump late Saturday set a 48-hour deadline to open the strait.
Tanker Traffic Plummets 95%
Just a trickle of cargo ships and tankers — most of them Iranian — have made it through the Strait of Hormuz since Iranian forces effectively blocked the crucial trade route in the Middle East war. From March 1 to 0400 GMT on March 23, commodities carriers made just 138 crossings, according to analytics firm Kpler — a 95 percent decrease from peacetime.
U.S. Weighs Kharg Island Blockade
An attack on Iran’s southern coast and islands will lead to Gulf shipping routes being cut with the laying of sea mines, the country’s Defence Council said on Monday according to state media. The U.S. is considering plans to occupy or blockade Iran’s Kharg Island, the country’s main oil export hub, to pressure Tehran to reopen the Strait of Hormuz to all shipping, according to Axios.
Saudi Arabia Cuts Oil Exports to Asia
Saudi Arabia is slashing its crude oil exports to Asia in April, for a second month in a row, as the de facto closed Strait of Hormuz is stranding most of the supply from the world’s top crude exporter. Saudi oil giant Aramco has notified customers of term supply in Asia that they would receive in April only the flagship Arab Light crude grade loaded at the Yanbu export port on the Red Sea, Reuters reported.
Qatar Warns LNG Disruptions Could Last
Qatar’s Energy Minister confirmed that disruptions to Qatari LNG exports may last far longer than initially assumed, and that a complete cessation of hostilities is required before restart operations can even begin. Production is one matter. Shipping the gas is another.
U.S. Gasoline Prices Near $4 Per Gallon
U.S. gasoline prices are on the cusp of reaching $4 per gallon, averaging $3.96 today, per AAA.
Permian Basin Drillers Remain Cautious
Oil and gas drillers in the Permian Basin remain cautious about expanding production despite surging prices because the process of drilling new wells is slow and expensive and because the Trump administration has promised to push down prices.
North Dakota Output Slow to Respond
North Dakota’s oil and gas industry is unlikely to ramp up drilling in response to price spikes anytime soon, as recent industry consolidation makes it slower to respond to price swings.
U.S. Battery Manufacturing Expands
U.S. grid battery manufacturing has been ramping up in recent years after onshoring efforts started during the Biden administration, putting the country on pace to be able to produce enough batteries to meet its own demand this year.
$17B Gas Plant Planned in Pennsylvania
The Trump administration announces plans to build a $17 billion natural gas power plant in Pennsylvania, but neither the White House nor the expected developer has yet shared details about the intended location or when construction will begin.