As U.S.-Iran talks show little sign of progress, commercial traffic through the Strait of Hormuz

remains sharply reduced, raising concerns about global energy markets and supply chains.

For more on what a prolonged disruption might mean, we're joined now by Daniel Yergan,

Vice Chairman of S&P Global and one of the world's leading energy analysts.

Thanks for being here.

Thank you. You have said that markets have absorbed this shock better than many expected.

What's the biggest reason why? Well, basically the biggest reason why is inventories. Inventories

in the United States. Remember, now the U.S. is the world's largest oil producer.

And so we have that's, and the other surprise has been China, which also has built up huge

inventories.

And I think those are the reasons that this shock has not been as extreme for the world,

as might have been expected on March 4th, when Iran shut down the Strait of Hormuz.

When those inventories deplete, how quickly could we see prices spike even higher?

Well, right now, I'd say the view is that as we get into July, if there's not some relief,

is when you'll start to see the prices reverse from where they are.

I should say it's in Asia, it's an energy crisis now.

I mean, they're really feeling it because they were so dependent on the supplies from the

Strait of Hormuz.

So they're having rationing shortages.

They don't have fertilizer.

They don't have diesel for farming.

In the United States, we're seeing at the gasoline pump.

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