A dramatic claim is spreading online: that the Strait of Hormuz has been shut down, hundreds of ships are trapped, and the global oil system is entering chaos. But what is actually true? In this video, we explain the strategic significance of the Strait of Hormuz, which transports a large portion of the world's oil supply every day. Even though tensions in the Gulf can have an impact on shipping costs, insurance rates, and energy markets, there is no confirmed evidence of a complete shutdown or the stranding of thousands of ships. Our focus is on discovering how the petrodollar system functions, why global oil trade still relies heavily on the U.S. dollar, and what a real de-dollarization would entail.
