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

Ferrari SF90 XX Spider limited edition plug in hybrid supercar parked on the pavement as a red Ferrari passes on Bond Street on 4th January 2026 in London, United Kingdom. Mike Kemp | In Pictures | A global base oils shortage is starting to filter through to drivers of luxury cars, with analysts and industry groups warning that stocks could soon run dry if the Iran war drags on. Ongoing disruption through the strategically vital Strait of Hormuz has triggered what the International Energy Agency has described as "the biggest energy security threat in history," although the supply shock stretches far beyond crude oil , fertilizer and helium . Base oils are the primary component used to produce high-performance lubricants for engine oils and industrial fluids. Group III and Group IV base oils, such as polyalphaolefins (PAO), are key feedstocks for synthetic finished lubricants used for automotive purposes, with PAO particularly important for luxury vehicles. Stocks are going to run dry in a month if nothing comes in and that will just cut finished lubricant production. Gabriella Twining head of base oils pricing at Argus Media The Gulf region accounts for as much as 20% of global Group III base oils capacity and accounts for 72% and 47% of Group III imports by Europe and the U.S., respectively, last year, according to Argus Media. …