This is the chart that explains the entire war economy right now.
14.2 million barrels of oil flow through the Strait of Hormuz every day. That's 25% of the world's maritime oil trade passing through a chokepoint 21 miles wide at its narrowest point.
On the supply side, Saudi Arabia alone pushes 5.29 million barrels a day through it. Iraq sends 3.24 million. UAE 1.83 million. Iran 1.51 million. Kuwait 1.43 million. Only Saudi Arabia and the UAE have pipelines that can bypass the strait entirely, everyone else is stuck.
On the demand side, 89% of the oil flowing through Hormuz goes to Asia. China takes 5.35 million barrels a day, 37.7% of total flow. India takes 2.09 million. South Korea 1.70 million. Japan 1.55 million. Europe gets just 0.53 million. The US gets 0.36 million.
This is why the war in Iran is an Asian energy crisis first and an American gas price problem second. When Iran shut down tanker traffic through the strait, it didn't just disrupt supply, it severed the energy lifeline for the world's fastest-growing economies.
China has ordered refiners to halt fuel exports. South Korea imposed fuel price caps for the first time in 30 years. Japan is draining its strategic reserves at record pace and watching its bond market blow up. Bangladesh shut down universities to conserve energy.
The US feels it at the pump. Asia feels it everywhere.
14.2 million barrels of oil flow through the Strait of Hormuz every day. That's 25% of the world's maritime oil trade passing through a chokepoint 21 miles wide at its narrowest point.
On the supply side, Saudi Arabia alone pushes 5.29 million barrels a day through it. Iraq sends 3.24 million. UAE 1.83 million. Iran 1.51 million. Kuwait 1.43 million. Only Saudi Arabia and the UAE have pipelines that can bypass the strait entirely, everyone else is stuck.
On the demand side, 89% of the oil flowing through Hormuz goes to Asia. China takes 5.35 million barrels a day, 37.7% of total flow. India takes 2.09 million. South Korea 1.70 million. Japan 1.55 million. Europe gets just 0.53 million. The US gets 0.36 million.
This is why the war in Iran is an Asian energy crisis first and an American gas price problem second. When Iran shut down tanker traffic through the strait, it didn't just disrupt supply, it severed the energy lifeline for the world's fastest-growing economies.
China has ordered refiners to halt fuel exports. South Korea imposed fuel price caps for the first time in 30 years. Japan is draining its strategic reserves at record pace and watching its bond market blow up. Bangladesh shut down universities to conserve energy.
The US feels it at the pump. Asia feels it everywhere.
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