The Strait of Hormuz is open but there are no buyers of oil.
The world had adjusted to the restriction of oil supply from the Middle East. The surge in oil supply now is about to collide with a market that, at least for now, simply does not need it.
Critically, a significant chunk of that demand destruction came — in a stunning turnaround — from China. Through 2025, China bought massive volumes of oil, far above the nation's domestic need, helping to keep a floor under prices at a time when the world faced a major oversupply glut. The barrels now exiting Hormuz increasingly have nowhere to go except China. But China is not buying.
Trump always does things wrong.
Critically, a significant chunk of that demand destruction came — in a stunning turnaround — from China. Through 2025, China bought massive volumes of oil, far above the nation's domestic need, helping to keep a floor under prices at a time when the world faced a major oversupply glut. The barrels now exiting Hormuz increasingly have nowhere to go except China. But China is not buying.
Trump always does things wrong.
