Hormuz Crisis Raises Risk of Largest Energy Shock in Decades

Some say markets have long priced in Iran conflict risk and it’s ‘no black swan’ while others say a prolonged crisis could leave lasting economic scars.

Oil tankers and cargo ships line up in the Strait of Hormuz as seen from Khor Fakkan, United Arab Emirates, on March 11, 2026. Altaf Qadri/AP Photo

Until only weeks ago, tankers made routine voyages through the Strait of Hormuz, transporting vital oil flows through one of the world’s most important energy corridors.

Roughly 20 percent of the world’s oil and a similar share of liquefied natural gas (LNG) flow through the narrow waterway between Iran and Oman.