TotalEnergies is calling for the Strait of Hormuz to be reopened at all costs

TotalEnergies Chairman Patrick Pouyanné is calling for every effort to be made to reopen the Strait of Hormuz. In this regard, Patrick Pouyanné believes that paying compensation to Iran – even if this is illegal under international law – would be the lesser of two evils compared to a prolonged blockade.
The spot price of oil is diverging sharply from futures market prices, highlighting the tension caused by the closure of the Strait. The price of North Sea oil has thus reached $149 a barrel, exceeding the prices seen in 2008 on the eve of the financial crisis. European countries now have only two or three months’ worth of stock left to cushion the impact of the crisis. Beyond that, rationing of kerosene, diesel and LNG will be necessary.