Energy Crisis Defied Expectations, Oil Prices Stabilize Amid Conflict

The Strait of Hormuz closure in early 2026 was expected to trigger an oil crisis on par with the 1970s, but it didn't quite live up to expectations. The conflict removed roughly 20% of global oil flows through this narrow waterway, and energy analysts predicted a disaster scenario.

However, by mid-June 2026, oil prices had stabilized in the $70 to $80 range, essentially returning to their pre-conflict level. This was despite an estimated 11-20 million barrels per day shortfall due to the disruption.

The International Energy Agency's Executive Director Fatih Birol described it as the 'greatest global energy security challenge in history.' Despite this, markets appeared unfazed by the crisis, and analysts attributed the stability to ceasefire discussions and reports of agreements to reopen the strait.

In contrast, Bitcoin miners felt the impact of the energy shock immediately. The cryptocurrency's hash rate dropped approximately 8% within a week due to surging energy costs in regions reliant on fossil fuel generation.