The Oil Supply Shock Will Scar the World for Years

The Middle East’s oil production and the global economy will take months and even years to recover from the worst crude supply shock in history. Two months after the U.S. and Israel bombed Iran on February 28, the Strait of Hormuz remains closed for most tanker traffic, forcing more than 10 million barrels per day (bpd) of crude output shut-ins across the Middle Eastern oil producers. The disrupted energy flows triggered a global race for alternative supply, and sent energy prices soaring with the prospect of slowing global economic growth…