Economist: The impact of the Strait of Hormuz closure is about to crush demand

Odaily Planet Daily News: The oil shock in the Strait of Hormuz has not yet caused demand to collapse, as wealthy countries are using reserves and paying high prices to ensure supply. But traders are now warning: a severe demand reduction is imminent. Traders say that the longer the Strait of Hormuz remains closed, the more consumption needs to be adjusted downward to match at least a 10% decrease in supply. To achieve this, people will have to cut back on purchases, either by paying unaffordable prices or through government intervention to suppress consumption. Saad Rahim, Chief Economist at Tock Group, stated that demand destruction is occurring in those non-visible pricing centers. This reduction is already happening, but if it continues, the scale of demand reduction will only grow larger. We are at a critical turning point. (Jin10)