Goldman Says Hormuz Oil Flows May Recover to Only 70% After War

Oil flows going through the Strait of Hormuz may recover to only about 70% of their pre-war level, according to Goldman Sachs Group Inc., which highlighted regional producers leaning on alternative routes.

“This normalization in gulf exports to pre-war levels might be achieved with a 13-million-barrel-a-day increase in Hormuz flows from current levels,” analysts including Yulia Zhestkova Grigsby wrote in a June 17 note entitled “70% of Pre-War Hormuz Flows Might Become the New 100%.”

The expected pickup in shipments may be completed by the end of next month, with gulf production likely to recover by October, they said. Before ...