Let's start with 20% of the oil from the Strait of Hormuz

PortfolioAlert · 2026-03-10T02:33:39+00:00

The article discusses the importance of the Strait of Hormuz in global transportation and its impact on oil prices. The author believes that the proportion of maritime shipping and pipeline transportation is not significant but does not consider that a reduction in oil production capacity could lead to a sharp increase in prices. It is suggested that this is a prisoner's dilemma, where the production cut strategies of oil-producing countries may pose threats and opportunities.

PortfolioAlert

2026-03-10 02:33:39

Abstract generation in progress

Originally, I saw that the Strait of Hormuz accounts for 20% of global shipping.
Later, I saw it said to account for 20% of global transportation.
The difference is that it includes not only shipping but also pipeline transportation, but which one is not the main point.
Whatever.
I initially thought it was 20%. Considering that other places can increase production, and for example, ports on both sides of Saudi Arabia’s coasts can also transport oil,
the actual impact is about 10%, so it’s not too significant. I didn’t even consider oil-related trading opportunities.
I never expected that oil prices would surge by 50% in just a few days.
If such a small reduction in capacity can lead to a 50% increase,
then it’s a prisoner’s dilemma game.
If oil-producing countries unite to cut production, they’d be extremely unhappy.

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