The Oil Crisis Is Far From Over

AI Summary

The ongoing U.S.-Iran conflict and the suspension of tanker traffic through the Strait of Hormuz are causing depletion in global oil inventories, threatening an energy crisis worldwide. The signed Memorandum of Understanding is unlikely to prevent the imminent energy shortage.

The outline of conditions and topics for a negotiated settlement of the U.S.-Iran conflict, called a Memorandum of Understanding (MOU) and signed by both sides last week, in all probability won't prevent the approaching energy cliff. That cliff will be the result of fast-depleting commercial and strategic inventories of oil and oil products around the world that have acted as buffers in the wake of the suspension of almost all tanker traffic through the Strait of Hormuz during the conflict - tankers believed to carry about 20 percent of the world's…