The Federal Reserve's Logan said U.S. oil production cannot fill the global gap, the Strait of Hormuz needs to be opened urgently.

Lael Brainard, president of the Federal Reserve Bank of Dallas, issued a warning that if shipping through the Strait of Hormuz cannot be restored to normal soon, global supply of oil and natural gas may begin to tighten. Brainard's jurisdiction includes the Permian Basin, the world's largest shale oil-producing region. She said that the US production cannot fill the global oil supply gap caused by the Iran war. While attending a meeting at the Bank of Japan in Tokyo on Wednesday, she said that capital, labor, and other input constraints, along with physical bottlenecks in transporting natural gas from the western Texas fields, mean that consumers may face a new reality: key fuel sources will no longer be as abundant as before. Brainard stated that about 10% of global oil supply is stuck in the Persian Gulf due to the war. So far, the release of reserves has partly filled the gap, but she added that reserves are ultimately limited.