Engine trouble ahead? How the Strait of Hormuz standoff threatens luxury auto giants

a base oils shortage from the strait of hormuz standoff is now threatening luxury car owners. group iii and iv base oils — used in high-performance synthetic lubricants — are running low. supercars in london, monte carlo and los angeles rely on them to handle extreme heat and high rpms. argus media says group iii base oil prices in northern europe have nearly doubled since the iran war started. the gulf region supplies about 20% of global group iii capacity, and last year accounted for 72% of europe's group iii imports and 47% of the us's. shell's pearl gas-to-liquid facility in qatar was damaged by iranian missile strikes. producers in bahrain and the uae declared force majeure. south korea, a major exporter, introduced mandatory export caps on refined products. argus's gabriella twining says stocks could run dry in a month if nothing comes in. the independent lubricant manufacturers association told us lawmakers that 44% of us base oil supply typically comes from the persian gulf. ilma expects the us market to stay under pressure until at least 2027. ceo holly alfano noted that hurricane season could take out 30-40% of us group ii capacity with a single storm.