Oil is the most impactful verdict in the gulf crisis as it affects each and every country or region across the globe.

US Badly Needs the Oil of the Gulf. While it produces sufficient amount within its own borders. Yet, it relies on oil from the outer world. There is an entire global infrastructure that supports the United States in getting this oil. However, the Middle East crisis, which America has itself started has changed the dynamics of this vital global trade. It shows US has limited control in Iran conflict.

Although, it has affected all regions of the world. Interestingly, the most affected part of the world is United States itself. So, the question arises: Is the US energy independent and Why it Matters?

American Oil Imports

Well, the U.S. still imports 6.5 million barrels of oil daily. Yes, America produces plenty of oil. But mostly light crude. Great for gasoline. Not so great for diesel, kerosene, jet fuel or the fuels that keep the global economy moving. Trucks. Ships. Factories. Supply chains. The world runs on diesel. And diesel needs heavy crude. From Canada and the Gulf.

Now let’s talk Hormuz. Does Iran need to close this narrow chokepoint, Strait? Not necessarily. If tankers can’t get insured…And shipping companies refuse the risk and stop sailing…Isn’t the result the same?

What about the Markets and Prices? Prices have already surged. Politicians talk about $85 per barrel. While Markets say another.  Some forecasts point toward $150… even $180 per barrel.

Who do you trust more: politicians who just babble or prices? American Elections Amid Crisis in the Strait of Hormuz mean politicians cannot be trusted.

What about infrastructure? Roughly 700,000 barrels per day of production capacity may be gone for years. And even if peace came tomorrow… Mines must be cleared. Supply chains rebuilt, insurance restored, and infrastructure would take months—if not years—to recover.

Bottom Line: The era of Western energy security is over. America can’t simply drill its way out. And Iran may have demonstrated something bigger:

In today’s world, you don’t always need to stop supply. Sometimes, making supply uncertain is enough. Iran did it.