Hormuz Closure Triggers History's Worst Oil Shock, Warns Erdogan
Addressing a renewable energy investment event in the capital Ankara, Erdogan announced that Türkiye had commissioned $5 billion worth of new energy infrastructure, bringing 6,818 megawatts of additional generating capacity online — underscoring Ankara's accelerating push to cement its role as a regional energy hub.
The Turkish president painted a stark picture of the Hormuz crisis's global fallout. The de facto closure of the strait — the critical maritime corridor linking Gulf producers to international markets — triggered the largest oil supply disruption in recorded history, he said, severing roughly 25% of global oil supplies and disrupting 20% of worldwide liquefied natural gas trade.
Oil prices, which had been trading near $60 per barrel prior to the crisis, subsequently surged to nearly double that level. The ripple effects, Erdogan warned, extended far beyond crude — cascading through fertilizer, plastics, and the full spectrum of petroleum-derived products.
"Schools were closed, restrictions were placed on private vehicles entering traffic," he said. "There were a significant number of flight cancellations. Long lines formed at gas stations."
The scenes, he noted, drew uncomfortable comparisons to the emergency consumption curbs imposed during the Covid-19 pandemic, with several nations rolling out similar demand-reduction measures in response to the energy squeeze.
With inflation climbing worldwide on the back of soaring fuel and commodity costs, Erdogan warned that the economic calculus has shifted dramatically. Where a global recovery had appeared within reach just months ago, the prolonged Hormuz crisis is now driving many nations to brace instead for recession.
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