Is the world at risk of another energy shock?

Disruptions across Strait of Hormuz, Bab al-Mandeb and the Black Sea threaten supplies and raise costs for consumers.

Shipping through the Strait of Hormuz remains in effect halted. Tankers are now avoiding another critical waterway – Bab al-Mandeb – as Yemen’s Houthi forces threaten Saudi-linked vessels. Ukrainian strikes have hit Russian export infrastructure. Three major routes are now disrupted at once: the Gulf, the Red Sea and the Black Sea.

Together, they threaten trade flows equivalent to nearly a quarter of global oil supplies just as reserves sit at multiyear lows. Goldman Sachs says oil could rise above $120 a barrel by the fourth quarter if disruptions in the Strait of Hormuz alone persist. Economies worldwide are bracing for another energy shock.