Former Boston Fed Chief Warns of Ongoing Oil Supply Shock

Rosengren says Strait of Hormuz disruptions will continue to impact global energy markets.

Apr. 8, 2026 at 9:20pm

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An extreme aerial view of a vast, densely packed grid of oil tankers and cargo ships, visually representing the scale and importance of the Strait of Hormuz as a critical global energy chokepoint.The closure of the Strait of Hormuz, a vital global oil shipping lane, continues to disrupt energy markets and the broader economy.Boston Today

Eric Rosengren, the former President of the Federal Reserve Bank of Boston, warned in a CNBC interview that the global energy supply will remain disrupted until the Strait of Hormuz fully reopens. Rosengren cited the ongoing geopolitical tensions in the region as a key factor driving oil price volatility and supply chain challenges.

Why it matters

The Strait of Hormuz is a critical global chokepoint for oil shipments, with around 20% of the world's oil supply passing through the narrow waterway. Prolonged disruptions to energy flows through the strait could have far-reaching economic consequences, including higher inflation, reduced business investment, and slower economic growth.

The details

Rosengren explained that until the Strait of Hormuz is fully operational again, the global energy market will continue to experience supply shocks that drive price swings. He noted that the Federal Reserve has been grappling with the ripple effects of these energy supply issues, which have complicated its efforts to tame inflation.

  • The interview with Rosengren took place on April 8, 2026.

The players

Eric Rosengren

The former President of the Federal Reserve Bank of Boston, with extensive experience analyzing the impact of global energy market dynamics on the U.S. economy.

Strait of Hormuz

A critical global chokepoint for oil shipments, with around 20% of the world's oil supply passing through the narrow waterway between Iran and the Arabian Peninsula.

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What they’re saying

“Until the Strait of Hormuz fully opens, there will still be oil supply shock.”

— Eric Rosengren, Former President, Federal Reserve Bank of Boston

The takeaway

Rosengren's warning underscores the continued vulnerability of the global economy to energy supply disruptions, even as policymakers work to address the broader inflationary pressures. The situation in the Strait of Hormuz remains a key wildcard that could prolong the current energy crisis.