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Hormuz crisis is redrawing Latin America's energy map

As Iran tightens its grip on the Strait of Hormuz, the shockwave from Asia's energy panic is reshaping Latin America's strategic calculus overnight. From Guyana's oil output to Chile's lithium mines, the region is reassessing its role in global supply chains.

A cargo ship and oil tanker at a port
A cargo ship and oil tanker at a portPhoto: Zifeng Xiong / Pexels
Rio Times4 d agoUSO
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Iran's tightening grip on shipping through the Strait of Hormuz, amid the wider Gulf conflict, has rattled Asian energy importers worried about supply security. But analysts say the more lasting effect of the shock may be felt in Latin America.

Guyana's rapidly growing oil output and Brazil's deepwater reserves have suddenly become more attractive to Asian refiners seeking alternatives that don't depend on Hormuz. Lithium deposits in Chile and Argentina are drawing similar attention from investors looking to diversify supply chains away from chokepoints tied to the conflict.

Regional governments are greeting the opportunity with cautious optimism, acknowledging that higher demand could push prices up even as volatility in global markets brings its own risks.

EnergyCommoditiesTradeUSOSouth AmericaRio Times
Source: Rio Times
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This article is an AI-curated summary of the original story published by Rio Times. The illustration is a stock photo by Zifeng Xiong from Pexels and is not from the original story.

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