Oil Volatility and Strait of Hormuz Tensions Explained 2026

The Strait of Hormuz remains a critical bottleneck for global energy supply, its importance largely unchanged by technological advancements or financial innovation. Approximately 20 million barrels of crude oil per day transit this waterway, and a significant disruption could severely impact the global economy. Market participants historically treated Hormuz disruption as a theoretical risk, but events in May 2026 represent a fundamental recalibration of supply assumptions.