Consequences of the Strait of Hormuz blockadeHenry Hub Natural Gas FuturesNYMEX_DL:NG1!SergioRichiConsequences of the Strait of Hormuz blockade: The situation around the Strait of Hormuz has turned into a serious mess. What started as another round of tension in the region has now grown into a conflict that is affecting global shipping. The strait is tiny on the map, but it carries a huge share of world energy flows. Roughly 20 to 30 percent of all oil and liquefied natural gas normally pass through this narrow route, so any disruption immediately hits the market. Because of ongoing threats and several real attacks on tankers, ship owners and insurers have started avoiding the area. Traffic has thinned out, transport costs have jumped, and buyers in Asia and Europe are already feeling the pressure from delayed deliveries. Right now the conflict looks less and less controllable, which explains the sharp reaction in energy prices. For Natural Gas, the next important price level is 9 dollars, and if the situation around the strait stays the same or worsens, a move toward 21 dollars is not off the table.