The U.S war in Iran has been ongoing for three weeks. The conflict has had huge consequences on the world economy, and oil prices have skyrocketed. Only a few ships are running through the Strait of Hormuz – and now, several countries are in danger of running out of oil. Here’s the entire list:
The conflict in Iran is hurting the world economy, and several countries are in the crossfire, not least because of the oil shortage.
Iran has announced they have closed the Strait of Hormuz, through which around 20% of the world’s oil passes, the BBC reports.
The war in Iran has led to reduced sea traffic, and global oil prices have skyrocketed. There are only a few ships running through the shipping lane.
A recent report has raised the alarm that some countries are risking running out of oil as the war rages on. Before the war, around 40 tankers carrying 20 million barrels of crude oil passed through the Strait of Hormuz daily. Now, it’s not even close.
The new report from Societe Generale (SocGen), which Forbes has reported on, suggests several countries are close to running out of oil.
List of countries most in danger of running out of oil as US-Iran war rages on
Per SocGen, Vietnam, Myanmar, and the Philippines source up to 80& of their oil via cargoes that pass the Strait of Hormuz. These countries have about a month of oil in storage left before they run out or have to find alternative supply routes.
Meanwhile, Singapore, a country that receives around 680,000 barrels per day (bdp) transported through the Hormuz Strait, has only 40 days of inventory left to “cover.” Meanwhile, Thailand has around 50 days of coverage for the 400,000 bpd it buys.
Other countries are also included, for example, Taiwan. They import 525,000 bpd and can stand around 100 days before the supply runs out. The same goes for Bangladesh; however, it has already issued fuel rationing.
For other, bigger countries, the issue could become a serious matter. Per the Forbes article, South Korea imports around 3 million bpd, with 2 million transported through the Strait of Hormuz. They have an inventory that can cover 50 days without imports, or about 70 days for only the Hormuz shipments. The same goes for India, which has a 175-million-barrel strategic petroleum reserve.
Indonesia will make it for about 160 days if the Strait of Hormuz remains closed, while Japan can make it for about 200 days. Meanwhile, China can make it for around 300 days.
“China has intentionally capped Middle Eastern dependence near 50% and built substantial shock absorbers through diversified oil sourcing, pipeline gas, domestic production, and large inventories,” analyst Lloyd Byrne at Jefferies told Forbes.
U.S situation
So what about the US? Well, luckily, they have begun reactivating drilling rigs. Now, the operating total is around 553, which is 39 fewer rigs than the same time last year.
The American oil rigs currently pump 13,6 million barrels per day, a new record. By the end of 2026, they will pump towards 14 million.
Do you thing the U.S should end its war in Iran or not? Please share your thoughts in the commens section.