Musah Danquah, Executive Director of Global InfoAnalytics, has issued a sobering warning to investors and consumers alike as the global economy teeters on the edge of an unprecedented energy crisis.
Danquah is urging the general public to brace for significant hikes in the price of petroleum products at the pump.
His assessment largely aligns with volatile global market reactions following Iran’s official announcement that it has closed the Strait of Hormuz, the world’s most vital maritime oil artery.
The move, executed by the Islamic Revolutionary Guard Corps (IRGC), follows a weekend of massive joint military strikes by the United States and Israel against Iranian targets.
Early reports indicate the IRGC has begun broadcasting radio warnings to all commercial vessels in the vicinity, stating bluntly that passage is no longer permitted.
The Strait of Hormuz is widely considered the “jugular vein” of global energy.
Roughly 20% of the world’s petroleum and a quarter of its Liquefied Natural Gas (LNG) pass through the 21-mile-wide chokepoint daily.
The closure has effectively trapped dozens of tankers inside the Persian Gulf and cut off major trade hubs like Jebel Ali.
Major shipping giants have wasted no time reacting to the blockade, with many rerouting fleets immediately.
In just the last 24 hours, Brent crude has surged past $91 per barrel, with some analysts predicting a jump to $120 or even $200 if the standoff persists.
Reacting to the developments on his Facebook page, Musah Danquah predicted a heavy spike in petroleum costs.
”Iran announces closure of Strait of Hormuz; expect oil to skyrocket,” he posted.
He further indicated that if the blockade holds, the price of crude will enter “uncharted territory,” citing a fundamental break in the global supply chain.
For countries like Ghana, the timing could not be worse. Experts warn that the surge in global crude prices will hit local pumps within days.
With the Cedi already under pressure, this “geopolitical risk premium” is expected to trigger a fresh wave of inflation, affecting everything from transport fares to food prices.
By 1960news.com
