Citi Warns of $110 Oil as Hormuz Blockage Persists

Citigroup has issued a stark warning regarding the global energy market, suggesting that crude prices could climb to $110 per barrel should the current disruptions in the Strait of Hormuz persist for an additional four weeks. The projection comes amid the escalating conflict between the United States and Iran, which has severely hampered traffic through one of the world's most critical maritime chokepoints. The Strait of Hormuz is essential for the transit of a significant portion of the world's daily oil consumption, making any prolonged blockage a systemic threat to energy security. According to the analysis, the prolonged blockage could lead to global crude and product inventory losses totaling approximately 1.3 billion barrels. This massive deficit would likely trigger a sharp spike in prices as refineries and nations scramble to secure alternative supplies to offset the loss of Iranian and regional exports. Market participants are closely monitoring the duration of the disruption, as a month-long blockage would create a supply shock of historic proportions. The resulting price volatility is expected to impact not only energy equities but also global inflation trajectories and transportation costs across all sectors.