The energy crisis will not just conclude when the Strait of Hormuz is reopened and may even extend until 2027.
S&P Global Energy cautioned in a report on Tuesday that even once Hormuz reopens, it will require at least an additional seven months to completely revive upstream production.
That projection might turn out to be overly positive.
S&P indicated that the seven-month period presumes: 1) energy infrastructure remains undamaged permanently and 2) supply chains function “efficiently.”
Conversely, the recovery might take more time based on the extent of damage to ports, pipelines, loading facilities, and other infrastructure in the Middle East.
“The more prolonged the closure of the strait, the higher the chances that the supply crisis will persist into late 2026 and into 2027,” stated S&P.