Hormuz Crisis Exposes Gap Between US Claims and Global Energy Reality

The Strait of Hormuz crisis is causing significant disruptions to global energy markets, despite US President Donald Trump's claim that the waterway is 'open' and under US control. European gas prices have risen from €31 to around €64 per megawatt-hour, while diesel prices have surged by more than 70 percent.

Market data shows that only seven cargo vessels passed through the Strait of Hormuz on Thursday, none of which were large oil tankers or LNG carriers. Before the war, nearly one-fifth of the world's crude oil and LNG shipments passed through the strait.

The situation is reminiscent of the 2022 energy crisis, when Europe was forced to turn to the global LNG market after Russian gas exports fell sharply. European gas storage levels are already below normal, at around 62 percent compared to a five-year average of roughly 78 percent for this point in the year.