Vitol’s senior Middle East executive warned that Western markets are ignoring a growing oil supply crunch triggered by the ongoing blockade of the Strait of Hormuz. Tom Baker, a board member at the trader, told attendees at S&P Global’s Middle East Petroleum & Gas Conference in London that Europe and the United States appear to be “asleep at the wheel.”

Disruptions in the Hormuz chokepoint could shave up to 1 million barrels per day from global supplies, tightening markets already strained by high demand and earlier OPEC cuts. Investors monitor the corridor because over 20% of worldwide oil transits it, and any prolonged blockage forces buyers to seek costlier alternatives, pressuring spot prices.

By downplaying the risk, policymakers may leave energy‑intensive industries exposed to sudden price spikes. Traders like Vitol are likely to adjust hedging strategies and may push for diplomatic pressure to reopen the strait. The immediate takeaway: market participants should reassess exposure to Hormuz‑related supply shocks.

Energy analysts note that the U.S. Strategic Petroleum Reserve, already tapped for previous disruptions, may not be sufficient to cushion a prolonged Hormuz closure. Companies reliant on Asian feedstocks could see freight rates climb, while European refiners may face tighter margins. The warning from Vitol underscores a widening gap between official risk assessments and market realities.