Hormuz Risk Extends Beyond Oil: Refining Margins and Bond Yields Stay Elevated

BitcoinWorld Hormuz Risk Extends Beyond Oil: Refining Margins and Bond Yields Stay Elevated The risk premium tied to the Strait of Hormuz is no longer confined to crude oil prices; it is now exerting upward pressure on global refining margins and sovereign bond yields, according to market analysts tracking the latest developments as of early 2025.

Why the Strait of Hormuz Matters Beyond Crude The Strait of Hormuz, a narrow waterway between the Persian Gulf and the Gulf of Oman, handles roughly 20% of global oil consumption and about 25% of liquefied natural gas trade.

Any disruption—whether from military conflict, sabotage, or diplomatic breakdown—directly threatens energy supply chains. However, the current risk premium is not just about the barrel price; it is reshaping downstream economics and financial markets.

Refining margins, the difference between the price of crude oil and the wholesale price of refined products like gasoline and diesel, have stayed elevated because of the uncertainty.