Hormuz Bottleneck to Punish Oil Buyers

A bottleneck in the Strait of Hormuz has disrupted global oil supply and strained supply chains, while recent attacks on energy infrastructure have reduced production capacity, Barron’s Daily reported.

If these disruptions continue or spread, the global economy could face higher inflation and slower growth.

Countries such as India and Pakistan have already begun limiting liquefied petroleum gas usage, while Sri Lanka has declared Wednesdays a public holiday to conserve fuel.

If these disruptions continue or spread, the global economy could face higher inflation and slower growth.

Net oil importers—particularly Asian economies dependent on Middle Eastern oil shipments—are among the hardest hit.

Market performance reflects this strain. The iShares MSCI South Africa ETF has dropped 23% this month, while South Korea’s is down 15%, Vietnam’s 13%, and India’s 10.7%. By contrast, energy exporters such as Saudi Arabia, Colombia, and Brazil have been more resilient.