Baker Hughes, a major oilfield services provider, has adjusted its financial outlook to account for the prolonged closure of the Strait of Hormuz.
A senior executive at the firm said Friday that the company is operating under the assumption that the strait may not fully reopen until the second half of 2026.
The Strait of Hormuz is a vital global energy artery, through which nearly 20% of the world's oil and a significant portion of liquefied natural gas (LNG) transit.
This comes as the U.S. and Iran continue to enforce competing blockades in the region, keeping tanker traffic at historically low levels.
The Strait of Hormuz is a vital global energy artery, through which nearly 20% of the world's oil and a significant portion of liquefied natural gas (LNG) transit.
The ongoing disruption has already led to elevated freight costs and tighter shipping insurance markets.
While no direct price movement was observed in the firm's shares, the broader energy sector remains sensitive to developments in the region.