After the Strait of Hormuz closed, China slashed its oil imports, seemingly without reducing energy demand or tapping into reserves. How China is doing it — and why — remains a mystery.
As the war in Iran pushes oil prices higher, some governments are shielding consumers with price controls. But economists warn that caps mask scarcity signals and can trigger the kind of panic buying that can even drive up oil prices more.
The war in Iran has cost the global oil supply roughly 15 million barrels a day, or 15%, so far. A shock that poses a “major, major threat” to the global economy, said Fatih Birol, the head of the the International Energy Agency.
Since the end of September, Brent Crude has been sliding — down to the $84-a-barrel range, more than a 10% decline in just over a week. This is also playing out at the pump, with gas down about eight cents a gallon in the last week.
