Did the U.S. Trick Iran Into Controlling the Flow of Engery? (Straight of Hormuz)

 

Not only oil but liquified gas also passes through the Strait of Hormuz.

Most of the world's energy grids rely on liquified gas to operate.

Was Trump counting on Iran blocking the Strait of Hormuz?

Who does this effect?

China.

What will be the end result of the Straight of Hormuz blocking 20 to 30% of the world's oi flow?

Why is energy all of a sudden, a weapon of mass economic destruction? (MED)  

Could it be because AI depends heavily on energy and without energy AI is a toy. 

Is the effort to win the AI game more serious than we realize?

Was Iran-Backed Militants talking about kidnapping or harming the Pope in retaliation for the death of the Supreme Leader in Iran?

Yes. 

So why are some of the channel's most intelligent viewers saying the Israel, U.S. Iran conflict is a fake war?

Are they right?

Maybe!

Just my thoughts as I sit here overlooking the Black Sea and praying that Putin remains cool. I am literally in Putin's backyard.

You must always remember that the Trump & Associates went after the Venezuelan oil just before this interesting development of events.  Venezuela has the largest oil reserves in the world. 

 ---- end of my personal thoughts- continue for article:

A prolonged shutdown of the Strait of Hormuz would likely push oil prices significantly higher. Some analysts believe crude could climb above $100 per barrel. Global benchmark Brent crude recently rose 2.6% to around $80 per barrel — nearly 10% higher since the conflict began.

Roughly 20% of global liquefied natural gas (LNG) exports from the Gulf are also at risk, particularly shipments from Qatar that transit the Strait of Hormuz, according to Kpler. Qatar, one of the world’s largest LNG suppliers, halted production after Iranian drone strikes hit facilities at Ras Laffan Industrial City and Mesaieed Industrial City.

Nomura analysts noted that in Asia, Thailand, India, South Korea, and the Philippines are especially vulnerable to rising oil prices because of their heavy reliance on energy imports. Malaysia, however, could benefit since it is an energy exporter.

Here’s how key regions dependent on Gulf energy supplies could be affected:

South Asia: Immediate Physical Pressure

South Asia would likely experience the most severe disruption, particularly in LNG supply.

Kpler data shows that Qatar and the UAE supply 99% of Pakistan’s LNG imports, 72% of Bangladesh’s, and 53% of India’s.

With limited storage capacity and little flexibility in procurement, Pakistan and Bangladesh are especially exposed. Bangladesh is already facing a structural gas shortfall exceeding 1,300 million cubic feet per day, according to the Institute for Energy Economics and Financial Analysis.

Analysts warn that supply disruptions in Pakistan and Bangladesh would likely lead to immediate power-sector demand destruction rather than aggressive bidding for expensive spot cargoes.

India faces the largest combined exposure in the region. More than half of its LNG imports are linked to Gulf suppliers, and many contracts are tied to Brent pricing. This means a spike in crude oil would simultaneously raise both oil import costs and LNG contract prices — creating a dual physical and financial shock.

Approximately 60% of India’s oil imports come from the Middle East. A sustained blockade would significantly increase energy costs and widen current-account pressures.

China: Large Exposure, Stronger Buffer

A closure of Hormuz would test China’s energy security, but the country has more flexibility than many of its neighbors.

China is the world’s largest crude oil importer and purchases more than 80% of Iran’s oil exports. Around 30% of its LNG imports come from Qatar and the UAE, and roughly 40% of its oil imports pass through the Strait of Hormuz.

However, China maintains larger inventories. As of late February, LNG stockpiles stood at approximately 7.6 million tons, providing short-term coverage.

If disruptions persist, China would need to compete for Atlantic LNG cargoes, tightening supply across the Pacific basin and driving regional price competition higher — even if outright shortages are avoided.

Saudi Arabia has increased crude shipments in recent weeks, and strategic petroleum reserves held by major consuming nations, including China, could provide temporary cushioning.

While China is highly exposed, analysts suggest it may not be the most vulnerable due to its diversified supply routes and reserves.

Japan and South Korea: Price Shock Risk

The Middle East supplies roughly 75% of Japan’s oil imports and about 70% of South Korea’s.

Their direct LNG exposure to the Gulf is lower than South Asia’s. South Korea sources about 14% of its LNG from Qatar and the UAE, while Japan sources around 6%.

Even without physical shortages, the price impact could be severe. Economies heavily dependent on energy imports — including Japan, South Korea, and Taiwan — are particularly sensitive to supply shocks.

Inventory levels are limited. South Korea holds approximately 3.5 million tons of LNG reserves, and Japan around 4.4 million tons — enough for only two to four weeks of steady demand.

South Korea’s net oil imports equal roughly 2.7% of GDP, placing it among the most vulnerable in terms of current-account exposure.

Southeast Asia: Inflation Before Shortage

Across much of Southeast Asia, the initial impact would likely be higher energy costs rather than immediate supply shortages.

Countries reliant on spot LNG purchases would face sharply higher replacement costs as Asia competes with Europe for Atlantic cargoes.

Thailand stands out as particularly exposed. It has the largest net oil imports in Asia at 4.7% of GDP. Every 10% increase in oil prices worsens Thailand’s current account by approximately 0.5 percentage points of GDP, making it one of the most sensitive economies to sustained price spikes.