The global oil market is losing significant volumes of oil every day because of safety concerns in the Strait of Hormuz [1].
This disruption threatens global energy stability by restricting one of the world's most critical maritime chokepoints. As tankers avoid the region, the resulting supply gap could influence global pricing and energy security.
Helima Croft, a senior energy analyst at RBC Capital Markets, detailed these risks during a May 5, 2026, segment on CNBC’s "The Exchange" [1]. Croft said that companies continue to report that it is not safe to traverse the Strait of Hormuz [1].
These safety concerns are driven by the ongoing Iran-Israel conflict [2]. The war has created a volatile environment that makes the passage of oil tankers hazardous, leading to the daily loss of oil volumes [2].
While specific barrel counts were not provided, Croft said that the loss of these volumes is a consistent, daily occurrence [1]. The continued avoidance of the strait by shipping companies suggests that the perceived risk remains high despite any temporary fluctuations in conflict intensity [1].
Industry observers note that the Strait of Hormuz is essential for the transit of oil from several major producers. When companies determine the route is unsafe, they must either seek alternative paths, which are often limited or more expensive, or cease shipments entirely [2].
“The market is still losing significant volumes of oil each day.”
The persistence of safety concerns in the Strait of Hormuz indicates that the geopolitical tension between Iran and Israel has a direct, measurable impact on the physical flow of energy. Because there are few viable alternatives to this chokepoint, prolonged avoidance by tankers creates a structural deficit in the available global oil supply, which typically puts upward pressure on crude prices.
