Goldman Sachs Warns Strait of Hormuz Traffic May Never Fully Recover

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Goldman Sachs warns that tanker traffic through the Strait of Hormuz may only recover to 70% of pre-war levels due to alternative oil routes used by Middle Eastern producers. Recovery to this level is expected by the end of July, but full traffic normalization remains uncertain.

Tanker traffic via the Strait of Hormuz may never fully recover to pre-war levels thanks to alternative routes that oil producers in the Middle East have tapped amid the crisis, Goldman Sachs analysts have warned. According to them, oil flows from the chokepoint could only recover to 70% of pre-war levels, or 13 million barrels daily. The recovery could take a little over a month, with that 70% of traffic achieved by the end of July, Bloomberg reported, citing the investment bank’s analysts. They also said full production recovery would take…