ExxonMobil’s CEO announced that roughly 15% of the company’s oil output is impacted by the closure of the Strait of Hormuz, a critical chokepoint for global oil supply. The disruption stems from the ongoing U.S.-Israeli conflict with Iran, now nearly three months old.
Insurance issues, naval threats, and mine risks have prevented most tanker traffic through the strait, forcing Gulf states to cut production significantly. Market sentiment now stands at 100% probability that crude oil will hit $90 by the end of June, reflecting expectations that supply constraints will persist and drive prices upward.