Macro Analysis /

Oil Update - Suez Canal shutdown serves as a reminder of the importance of oil chokepoints

    7 April 2021
    Published byUniCredit
    • The blockage of the Suez Canal provided a reminder of the vulnerability of oil chokepoints – narrow channels along widely used global sea routes through which petroleum is transported.
    • The Suez Canal represents a key point but not the most vital oil chokepoint. The Strait of Hormuz and the Strait of Malacca are the world's most important strategic waterways.
    • The former might be a source of market risk in the short term as talks about the Iranian nuclear deal resumes, while the latter will remain a focal point in the tense relations between the US and China.