"At the moment, the Strait of Hormuz is almost completely closed, and we're losing about 20 million barrels a day. That's one-fifth of global demand. If this continues, there will be a real shortage of supply worldwide, including in the UK."
"Shipping analysts from Lloyd's List suggest that even with military escorts, oil flows through the strait might only recover to 8-10% of normal levels, indicating severely constrained supply recovery despite intervention efforts."
"The government may need to prioritise fuel supplies for essential services, such as food distribution, hospitals, schools, and transport networks, suggesting that such measures would effectively amount to rationing without proper preparation."
Britain may experience significant oil and gas supply shortages if Middle East hostilities continue disrupting the Strait of Hormuz, a critical global energy chokepoint. The UK consumes 1.4 million barrels daily, with domestic North Sea production covering only half of demand. The remaining half depends on imports, primarily from the United States and Norway. With the strait nearly closed, global oil flows have dropped by approximately 20 million barrels daily. Energy experts warn the government may need to activate emergency powers, including restricting petrol station purchases and operating hours. Essential services like hospitals, food distribution, and transport networks would receive priority. Without preparation, panic buying could occur within three to four weeks, potentially escalating the crisis.
Read at London Business News | Londonlovesbusiness.com
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