Sunday, 13 September 2026European Markets

Energy Security

3 articles

Nine Weeks of Hormuz Closure Risks 1970s-Scale Energy Shock for Europe

Nine Weeks of Hormuz Closure Risks 1970s-Scale Energy Shock for Europe

The Strait of Hormuz closure is entering its ninth week following a US-Israel military strike on Iran, with economists comparing the shock to the 1970s oil crises. Stagflation risks are mounting as demand destruction spreads from Asian markets into Western economies. European policymakers face constrained options as inflation pressure collides with already-fragile growth.

LM Salvado
Economists Warn Middle East Conflict Could Trigger 1970s-Style Oil Shock for Europe

Economists Warn Middle East Conflict Could Trigger 1970s-Style Oil Shock for Europe

A Middle East conflict threatening the Strait of Hormuz has drawn warnings from top economists of an energy crisis rivalling the 1970s. IMF chief economist Pierre-Olivier Gourinchas says the shock could drive unemployment and food insecurity across multiple countries. Without a resolution, economist Justin Wolfers warns elevated energy costs could persist for years — a direct threat to Europe's energy-dependent economy.

LM Salvado
Hormuz blockade removes 20M barrels daily, pushing UK mortgage rates up as inflation delays easing until 2026

Hormuz blockade removes 20M barrels daily, pushing UK mortgage rates up as inflation delays easing until 2026

The Middle East conflict has cut 20 million barrels per day from global oil markets through a Hormuz Strait blockade, according to MacroEdge Research. Resulting inflationary pressure is forcing the Bank of England to hold rates at 3.75% while UK mortgage lenders raise borrowing costs, with Federal Reserve officials warning price pressures won't ease before late 2026.

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AI Chip Boom Lifts Semiconductors as Export-Control Gaps Persist
AI infrastructure demand is fueling a broad semiconductor rally — Broadcom's AI chip revenue and Q4 guidance, Amazon's custom silicon crossing a $25B annual run rate, and bullish analyst calls on Micron and Sandisk tied to a memory chip boom underestimated even by bulls — with ASML rallying on sympathy. That momentum runs alongside unresolved US-China tech tensions: Belgium's arrest of a suspect for stealing chip technology for China and a blacklisted Chinese firm still acquiring Nvidia's top AI chips show export-control enforcement lagging the pace of AI chip demand.
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High probability of expanded label indications, additional combination approvals, and competitive positioning strength in follicular lymphoma market. Predicts positive commercial uptake and potential accelerated review for related indications.
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