Baker Hughes expects Strait of Hormuz to remain closed until second half of 2026
Updated
Updated · CNBC · Apr 24
Baker Hughes expects Strait of Hormuz to remain closed until second half of 2026
12 articles · Updated · CNBC · Apr 24
Baker Hughes CFO Ahmed Moghal told investors the company’s financial guidance assumes the U.S.-Iran conflict continues through June, delaying the strait’s reopening by several months.
Industry surveys show nearly 80% of oil and gas executives expect the strait to stay closed until August or later, with ongoing disruptions likely.
The closure has disrupted 10% of global oil and 20% of LNG supplies, driving persistent risk premiums and highlighting the strait’s critical role in global energy markets.
Who will blink first in the U.S.-Iran standoff to reopen the world’s most vital oil artery?
With Qatar's LNG offline for years, is the global green energy transition now on hold?
Beyond oil prices, what are the hidden costs of history's biggest energy supply shock?
Can new Mideast energy routes truly bypass the region's now 'structural' geopolitical risk?
Are corporate playbooks ready for a world where major trade routes can close indefinitely?
How does the death of Iran's Supreme Leader impact its strategy in the Hormuz conflict?
Strait of Hormuz Closure in 2026: Impact on Global Oil Supply and Market Volatility
Overview
Since February 28, 2026, Iran has closed the Strait of Hormuz in response to US and Israeli military strikes and a US naval blockade, halting about one-fifth of global oil and LNG shipments. This has caused a severe supply shock, pushing Brent crude prices above $100 per barrel and triggering sharp increases in LNG and jet fuel costs, fueling global inflation. The closure has strained oilfield service companies and disrupted supply chains, prompting accelerated pipeline projects and LNG investments as alternatives. Diplomatic efforts face major obstacles, making intermittent disruptions likely. The crisis is reshaping global energy security, emphasizing resilience against volatility and driving long-term infrastructure diversification.