Hormuz Disruption Sets Stage for Dune Oil's Turkish Block to Shine
The largest oil supply disruption in recorded history is currently underway, affecting Dune Oil Corp's Turkish oil block. The company holds a 29% working interest in Block M47, located in southeastern Turkey, and has committed US$15 million across 2026 and 2027 toward the M47 work program.
The macroeconomic context has shifted substantially since the block's independent resource evaluation was completed. The evaluation used a near-term Brent price assumption of US$63.68 per barrel for 2026, but Brent has since traded above US$100 per barrel following the partial closure of the Strait of Hormuz.
Dune estimates that the disruption has removed approximately 9.1 million barrels per day from global supply, exceeding prior historical shocks. Scott Lower, Dune's president, notes that 'a decade of underinvestment doesn't unwind in a quarter' and views the current supply crunch as not temporary.