Piper Sandler has downplayed expectations of a swift resolution to the Strait of Hormuz standoff, forecasting that the critical oil shipping corridor will remain largely closed for months.
The firm warned that this prolonged disruption could push crude oil prices to record highs this summer.
The Strait of Hormuz is a vital artery for global oil trade, with nearly 20% of the world's oil passing through the narrow waterway.
The firm's assessment comes amid ongoing tensions between the U.S. and Iran, with both sides enforcing competing blockades in the region.
Tanker traffic through the strait remains at historically low levels, compounding concerns over energy supply stability.
This has already triggered a sharp rise in oil prices, with Brent crude climbing in response to the heightened risk.
The Strait of Hormuz is a vital artery for global oil trade, with nearly 20% of the world's oil passing through the narrow waterway.