In this timely analysis, Lena Petrova breaks down how the closure of the Strait of Hormuz—through which nearly 20% of global oil flows—is rapidly draining worldwide inventories and pushing the oil system toward systemic failure. With buffers shrinking fast, soaring prices, demand destruction, and supply chain chaos could trigger inflation and a full-blown recession well before actual oil reserves run dry. The video draws on insights from JPMorgan, UBS, Rapidan Energy Group, and the IEA to explain energy security risks, market vulnerabilities, and why this circulation breakdown poses an immediate threat to global economic stability.
