World Oil Supply Squeezed as Conflict Cuts Key Shipping Route

Reuters reported July 15, 2026 that oil flowing through the Strait of Hormuz — a narrow waterway carrying a fifth of the world's oil — has fallen below half pre-war levels amid US-Iran strikes on energy infrastructure. Oil prices sit near a four-year high at $93–$97 a barrel. Reuters projects prices could exceed $110 in late 2026 if disruptions persist.