{"id":533161,"date":"2026-07-19T04:32:26","date_gmt":"2026-07-19T04:32:26","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/533161\/"},"modified":"2026-07-19T04:32:26","modified_gmt":"2026-07-19T04:32:26","slug":"why-the-strait-of-hormuz-is-losing-importance-etenergyworld","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/533161\/","title":{"rendered":"Why the Strait of Hormuz is losing importance, ETEnergyworld"},"content":{"rendered":"

\"<p>TheThe unexpected resilience of markets has other explanations, but together they all force a bigger question: Does the world simply wait for the critical waterway to normalize?For decades, American presidents<\/a> sought to avoid direct conflict with Iran. A significant part of their calculus was how a tiny waterway abutting its shores could be easily blocked, and how nearby nations that send one-fifth of the world\u2019s oil<\/a> and natural gas through it could see their energy infrastructure damaged or destroyed.<\/p>\n

Not being one of those presidents, Donald Trump<\/a> on Feb. 28 joined Israel in attacking Iran, and those historical fears were quickly realized. But yet, the disruption of the Strait of Hormuz<\/a> and Iranian strikes on Persian Gulf<\/a> nations haven\u2019t triggered the catastrophically high oil prices previously foreseen. So what happened? In this weekly documentary, we explain the reasons for this surprise, and how they may indicate the world is approaching \u201cpeak Hormuz<\/a>.\u201d<\/p>\n

When the bombing began 4 \u00bd months ago, the world was already awash in oil. Add to that the coordinated release of brimming reserves and, most importantly, how major fossil fuel buyer China stayed on the sidelines, and you have a few clues. Meanwhile, two major oil producers in the Middle East began to make more use of cross-desert pipelines that avoid the fraught strait altogether. <\/p>\n

The unexpected resilience of markets has other explanations, but together they all force a bigger question: Does the world simply wait for the critical waterway to normalize? Or will nations double down on alternative routes, bulk up their inventories and broaden their supply systems to hedge against future risks? With the ability to choke energy flows through the Strait of Hormuz no longer geopolitical theory, the answer arguably seems clear.\n <\/p>\n

Published On Jul 17, 2026 at 03:18 PM IST<\/p>\n

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