Commerzbank says if the Strait of Hormuz is completely blocked, this would cause supply to fall by 20%, leading to a likely rise of over USD 100/bbl for oil prices

Commerzbank says if the Strait of Hormuz is completely blocked, this would cause supply to fall by 20%, leading to a likely rise of over USD 100/bbl for oil prices.

Commerzbank's warning about a potential blockage of the Strait of Hormuz highlights a significant escalation in geopolitical risks that could severely impact global oil supply, potentially leading to a drastic price surge. Such a scenario could tighten the supply-demand balance, prompting traders to adjust their positions in oil and related currencies, especially those tied to energy exports.