The Strait of Hormuz is finally reopening, but energy flows may not get back to normal until next year
The Strait of Hormuz is set to fully reopen following an agreement between the U.S. and Iran, but a complete return to normal energy flows is not expected until 2027. The disruption, which lasted three months, led to a significant loss of global oil supplies, forcing countries to deplete reserves and implement rationing. While markets have shown resilience, experts anticipate a gradual recovery, with full normalization dependent on factors like shipping availability, insurance costs, and restored operational confidence, rather than underlying production capacity. AI
