The oil apocalypse is here

The current global oil shock stems from the convergence of three distinct crises: the Iran-U.S. conflict, the Russia-Ukraine war, and the Saudi-Houthi conflict in Yemen. These disruptions have effectively closed key maritime chokepoints like the Strait of Hormuz and the Bab al-Mandeb, forcing oil tankers to take significantly longer routes around the Cape of Good Hope. This shipping bottleneck, combined with widespread damage to oil refineries, has caused the "crack spread"—the cost of refining crude into diesel—to triple. Because diesel is essential for global trucking, agriculture, and shipping, this supply crunch is driving up the costs of food, construction, and consumer goods worldwide. Despite potential government interventions like export bans, the structural nature of these shortages indicates that global energy markets face a sustained period of volatility and increased costs.