No, not a MAGA talking point. 6/4/26 New York Times:
But with every passing day, the world is learning to live without the Gulf’s seaborne exports.
1Just as the Covid-19 pandemic and President Trump’s tariffs forced a significant rewiring of global supply chains, the Strait’s closure has prompted a similar adjustment. You might be part of it. When gas prices rise rapidly, people start to limit their driving. Walmart just reported that customers are now buying less than 10 gallons of gas at a time on average at its filling stations.
The United States, Brazil, Canada, Kazakhstan and Venezuela are already increasing their oil production. Large releases of crude oil from the U.S. Strategic Petroleum Reserve are also helping to cover shortfalls. Like a stream that finds its way around a fallen log, markets locate new supplies when the old ones are suddenly cut off.
At some point, the Iranian crazies will get poor enough for their religious objections to evaporate. By then, Iran will be a less important source of oil. And on the bright side, reduced consumption of oil will make the world a better place for Greenies.
the price of gas (and other oil related products) is being kept artificially low by drawing down stockpiles and by reserve releases....and in many US states by the removal of all or a portion of the road taxes.
ReplyDeleteWe aren't "learning to live without the Gulf’s seaborne exports" we are punting that issue down the road a few weeks or months.
you are talking 1/5 of the worlds oil production. The world cannot change their consumption and production habits that rapidly.