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Dallas Fed warns Hormuz blockage could cut oil supply.

5/28/2026

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Summary

Story summary

Dallas Federal Reserve (Fed) President Lorie Logan warned that halted Hormuz shipping could shrink oil-gas supplies, noting 10% of oil is trapped in Persian Gulf and urging the Fed to create a toolkit for Treasury market resilience.
Logan said U.S. output from the Permian Basin cannot fill the gap because of labor, capital and infrastructure limits, and that drilling breakeven is below $70 per barrel while WTI trades near $110.

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Story summary

Dallas Federal Reserve (Fed) President Lorie Logan warned that halted Hormuz shipping could shrink oil-gas supplies, noting 10% of oil is trapped in Persian Gulf and urging the Fed to create a toolkit for Treasury market resilience.
Logan said U.S. output from the Permian Basin cannot fill the gap because of labor, capital and infrastructure limits, and that drilling breakeven is below $70 per barrel while WTI trades near $110.