Strait of Hormuz Constraints Keep Oil Prices Elevated

Oil prices remain close to $100 per barrel despite the U.S.-Iran ceasefire, which revived hopes that the worst oil and gas supply shock ever could begin to ease soon and bring energy prices down. While immediate escalation has been taken out of the war premium, at least as of Friday morning, the reality on the ground – and in the Strait of Hormuz – is that the vital oil and LNG chokepoint remains largely closed and traffic controlled at Iran’s discretion. The shocking and very steep rise in oil and gas prices due to the six-week war, and most of…