That oil comes from the Persian Gulf.
The last tankers that made it through the Strait of Hormuz before the war started are either in port or are making port. Since almost nobody keeps large supplies of raw materials on hand anymore (the whole world has gone just-in-time supply), the plastics makers are in trouble. That effects almost everything. Think of all the stuff that comes in plastic containers and bottles, like your prescriptions.
All of that stuff will be in short supply. Even if the war ends tomorrow, it'll take month, if not years, to get everything back to where it was.
And you can thank this clown for that:
Enter the demand destruction game:
ReplyDeletehttps://www.youtube.com/watch?v=Q3nNLEcbo8A
China is already using their leverage.
China, the United States, and Japan hold most strategic oil inventories in 2025
https://www.eia.gov/todayinenergy/detail.php?id=67504
As to secondary and tertiary effects, I wouldn't count on too much clothing from SE Asia among other things.
ReplyDeleteSo, that means all the clothes manufactures will be coming back to the U.S.and sell at the same price, right? After the tariffs and now this war it just shows that in Donald J Trump the J stands for economic Jenious. /S
DeleteWrangler and Lee jeans do their cutting and sewing in Mexico. They source their denim is SE Asia. Ralph Lauren plant list here https://corporate.ralphlauren.com/cs-factory-list.html
ReplyDelete