The president of the Federal Reserve Bank of Dallas has some advice for all trying to stop the Iran War: Get the Strait of Hormuz opened.
Otherwise, global oil supplies will get severely constrained, Lorie Logan told attendees at the Bank of Japan Institute for Monetary and Economic Studies Conference. And, she said, fuel consumption might need to fall more than it already has since Israel and the United States attacked Iran starting on Feb. 2. Before the war erupted, about 20% of the world’s crude oil passed through the strait every day, Logan noted.
The war has reduced global oil supply by nearly 13 million barrels per day, or more than 10%. Oil-reserve drawdowns by nations around the world have filled much of that shortfall so far. U.S. crude-oil exports have helped, too, she said.