Art Berman warns that millions of barrels of Persian Gulf oil production remain shut in due to ongoing conflict.
Petroleum geologist Art Berman warns that the global energy market faces a significant long-term disruption as millions of barrels of Persian Gulf oil production remain shut in. While the Strait of Hormuz remains a strategic waterway, Berman notes that restoring production from shut-in wells is a more complex, high-risk process than simply reopening the shipping lane. He estimates that approximately 8 million barrels of production are currently offline, with some wells potentially never fully recovering to their previous output levels. Simultaneously, the administration is intensifying economic pressure on Iran to resolve the conflict. U.S. Treasury Secretary Scott Bessent is set to unveil a new package of sanctions against Iran, which the administration described as the toughest sanctions in history. These measures aim to economically isolate Iran and collapse the Islamic Republic's financial standing. While Iran has pushed back against these threats, the administration maintains that record American production strengthens national security and energy independence.