Hormuz Disruption Permanently Raises Cost of World's Cheapest Crude

The Strait of Hormuz is a critical waterway for global crude oil flows, accounting for one-third of total shipments. Despite the largest reserve release in history, the gap remains significant.

Refineries in Asia have paused production but are now ramping up again, competing for barrels in an already strained system.

The Strait's disruption may be permanent, increasing the cost of the world's cheapest crude. With Strategic Petroleum Reserve releases ending and deferred Asian demand returning, oil-levered equities are poised for durable upside.