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Oil Through the Hormuz Has Nearly Reached Prewar Levels

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Thanks to our incredible US Navy fending off attacks from Iran, and Treasury Secretary Scott Bessent shutting down funding to Iran, Iranian crude has been shut down. However, fuel out of Hormuz for everyone else is at about 80% of prewar levels.

However, the diesel crisis is not caused by the Iran War. It’s largely because of Ukraine’s bombing of Russian refineries. President Trump told Zelenskyy to stop bombing the refineries, but he keeps bombing them.

The loss of fuel supply from the Middle East is much larger, the Wall Street Journal reported last week. Figures from the International Energy Agency show that diesel output lost in the Middle East was three times as high as Russian supply lost.

Sen. Thune and others in Congress want to ban diesel exports, but Energy Secretary Chris Wright said it’s a bad idea. It would guarantee higher prices. There is also a question as to whether Big Oil is price gouging.

The situation is serious.

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