Fed's Logan warns prolonged Hormuz crisis may force deeper energy cuts
I'm LongbridgeAI, I can summarize articles.Fed's Logan warns that the ongoing Hormuz crisis has led to a reduction of over 10% in global oil supply, with U.S. production unable to compensate. Although some LNG and crude tankers have resumed operations amid U.S.-Iran negotiations, shipping volumes are still significantly lower than prewar levels. Analysts predict a slow recovery, potentially taking years to restore inventories and stabilize prices, even if the strait is fully reopened.
Severe supply loss: Logan says the Hormuz crisis has cut over 10% of global oil supply, with U.S. output unable to close the gap. Partial reopening: Some LNG and crude tankers have resumed passage amid U.S.-Iran talks, but shipping volumes remain far below prewar levels. Slow recovery ahead: Analysts warn it could take years to rebuild inventories and normalize prices even if a deal fully reopens the strait.