Baker Hughes, a leading oilfield services firm, has assumed in its financial guidance that the Strait of Hormuz may not fully reopen until the second half of 2026 due to ongoing tensions between the US and Iran.
The assumption is based on the company's expectation that the US-Iran conflict will continue through June, with the strait remaining partially or fully closed until then.
Baker Hughes' Chief Financial Officer Ahmed Moghal told investors during a first-quarter earnings call that there is still significant uncertainty surrounding the duration and depth of the conflict.
The company's assumption is in line with a survey by the Federal Reserve Bank of Dallas, which found that nearly 80% of oil and gas executives believe the strait will not reopen until August or later.
The closure of the Strait of Hormuz has had significant impacts on global energy markets, knocking offline around 10% of global oil volumes and 20% of liquefied natural gas supplies.