Piper Sandler: The Strait of Hormuz may be closed for a long time, and oil prices may hit a new high

According to the Piper Sandler report, the market's optimistic expectations for a deal between the United States and Iran lack basis, and the Strait of Hormuz may be widely closed in the coming months, with oil prices possibly reaching new highs this summer. The report states that it is difficult for cross-strait shipping to recover to 50% of pre war levels in the short term, and supply shortages will push up energy prices. Dave Ernsberger, President of S&P Global Energy, stated that the market is cautious about crude oil positions due to the information confusion surrounding negotiations and the opening of the strait. According to reports, the market is concerned that Iran may impose tolls on oil tankers, although Iranian officials deny the charges but emphasize the costs of navigation and ecological protection. Industry insiders predict that even if an open agreement is reached, it may take several months to a year for crude oil transportation to return to normal.