Hours to days: The instinctive safe-haven flight from crude oil is the fastest and most volatile among all assets. Even the mere threat of a blockage in the Strait of Hormuz, rather than an actual blockade, is enough to trigger a sharp surge in oil prices. About 20% of global oil trade passes through this route, and the market is pricing in tail risks rather than the baseline scenario.
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Hours to days: The instinctive safe-haven flight from crude oil is the fastest and most volatile among all assets. Even the mere threat of a blockage in the Strait of Hormuz, rather than an actual blockade, is enough to trigger a sharp surge in oil prices. About 20% of global oil trade passes through this route, and the market is pricing in tail risks rather than the baseline scenario.