Former US Energy Secretary Ernest Moniz warned that oil prices could surge to triple-digit levels if the Strait of Hormuz remains closed amid Middle East tensions. Speaking on Bloomberg's 'The Close,' Moniz emphasized the critical role of the strait in global energy supply and the potential for severe price spikes if the waterway stays blocked.

Moniz, now CEO of the EFI Foundation, outlined several options to mitigate the economic impact on consumers, including potential oil releases from strategic reserves. The former energy secretary's comments come as geopolitical tensions continue to rattle energy markets, with traders closely monitoring developments in the region that could disrupt oil flows through the vital shipping lane.

The Strait of Hormuz handles roughly 20% of global oil shipments, making it a chokepoint for energy markets. Moniz's warning highlights the vulnerability of energy supplies to regional conflicts and the potential for rapid price increases that could strain household budgets and economic growth worldwide.