Podcast episode: The Strait of Hormuz crisis and the Middle East

The ongoing conflict in the Middle East significantly disrupts global oil supply chains and regional energy affordability. While ship-to-ship transfers initially facilitated a recovery in September, escalating tanker attacks and infrastructure strikes have created new bottlenecks, driving freight rates for crude carriers to ten times pre-war levels. This instability, coupled with longer shipping routes around the Cape of Good Hope, contributes to a projected 2.6 million barrel-per-day decline in global oil demand. Within the region, countries like Iraq face domestic power shortages due to reduced gas imports, while Egypt struggles with a doubling of its energy import bill, forcing significant tariff hikes. These challenges highlight the urgent need for producer and importer economies to diversify their energy mixes and infrastructure to mitigate volatility and ensure long-term energy security.