Bank of America Warns of Oil Market Instability Amid Hormuz Negotiations
Bank of America has issued a warning that oil prices could continue to rise if the U.S. and Iran fail to reach an agreement to reopen the Strait of Hormuz. Currently, tanker traffic through this critical chokepoint is significantly reduced, with only 5 to 10 ships passing daily compared to 140 before the conflict. The bank highlights severe shortages in diesel, gasoline, and global natural gas markets, exacerbated by the limited passage through Hormuz. The situation has led to increased refining margins, with diesel crack spreads reaching unprecedented levels. 
