Strait of Hormuz closure disrupts luxury car oils amid energy crisis

Saturday 02 May 2026 - 08:23

By: Dakir Madiha

Strait of Hormuz closure disrupts luxury car oils amid energy crisis

The Strait of Hormuz closure blocks 20% of global oil and comparable liquefied natural gas flows, sparking the modern era's largest energy disruption. Asian governments ration fuels, revive coal power, and fast-track nuclear plans. Western oil majors post surging profits as supplies dwindle.

The International Energy Agency calls this the greatest energy security threat ever. A "double blockade" keeps Iran from shipping to allies while U.S. naval forces seal Iranian ports, sidelining 20 million barrels per day. Goldman Sachs pegged April's market deficit at 13.7 million barrels daily, with global stocks at historic lows. Asia absorbs 90% of the strait-bound oil and gas, placing it at the crisis core. At least 16 Asian nations enact emergency cuts. Pakistan lowers highway speeds, the Philippines declares a national emergency, Laos pushes remote work, and Indonesia caps subsidized fuel at 50 liters daily through May. Fuel prices in Bangladesh, Cambodia, and Myanmar jump 50% to 80%. Final Gulf LNG shipments before closure arrive soon, but Asia faces shortages until 2028.

Nations pivot to coal for electricity after phasing it out. South Korea lifts coal power curbs, India ramps up coal use before summer, and Thailand, the Philippines, and Vietnam expand coal generation. Analysts forecast a global coal rise of 1.8% this year, driven by gas-to-coal switching. Nuclear gains momentum long-term. South Korea readies five idle reactors for May restart. Taiwan weighs reactivating two mothballed units. Japan signs a $40 billion U.S. nuclear deal and a French fuel recycling pact; it restarted Kashiwazaki-Kariwa, the world's largest nuclear plant, in January. Nearly 40 countries join a push to triple global nuclear capacity by 2050.

Oil firms reap windfalls. BP reports $3.2 billion first-quarter profit, double last year's $1.38 billion, fueled by peak trading since 2022. ExxonMobil hits $85.1 billion revenue, exceeding forecasts despite slightly missing per-share earnings. Rystad Energy data shows top 100 oil and gas companies netting over $30 million hourly in the conflict's first month, on track for $234 billion collective gains by year-end at $100 per barrel averages. EU finance ministers from five nations demand bloc-wide superprofit taxes and gas price caps. Companies selling fuel amid the war profit massively while governments subsidize citizens.