Bloomberg Surveillance · Wednesday, September 30, 2026
Despite increased crude oil flow through the Strait of Hormuz, Brent crude prices remain elevated due to supply constraints and significant geopolitical risks. The market is particularly concerned about a diesel shortage, with limited supply from key regions. This, coupled with a high U.S. military presence to protect oil transit, makes the energy situation volatile and expensive.
“And that's succeeding. I think the problem is, you know, what happens once we get through the midterms, because it's clearly an unsustainably expensive effort right now.”
“The second problem is that I keep saying you're pushing on a string. And the fact of the matter is the constraint is not crude. The constraint is diesel. And we're getting almost no diesel out of the Straits of Hormuz.”
“So the market got panicky, and that's why we're at 100. But at the same time, actually, the US military effort was massively ramping up the crude, which takes 50 days to reach its destination.”