Hormuz oil shock echoes 1973 embargo lessons

Hormuz oil shock echoes 1973 embargo lessons as the reopening of the Strait of Hormuz after more than 100 days highlights how fragile global energy flows remain. Reuters reported that the latest Middle East crisis was tested against an interlinked modern oil market, with thousands of tankers, trading houses and complex pricing systems connecting supply and demand. The disruption started during a U.S.-Israeli war with Iran that began February 28, prompting rapid shifts such as reduced stockpile use and China cutting imports. However, markets were close to a tipping point because inventories were nearing critically low levels when the strait reopened. Asia faced the sharpest pressure, relying on the Middle East for 60% of its oil and gas imports. The article draws parallels to the 1973 Arab oil embargo, which quadrupled prices after the Yom Kippur war.