Bob Elliott
· Nonconsensus
· May 11, 2026 at 09:41
· ⏱ 4 min read
| Read on Substack ↗
Summary
The author warns that an oil inventory squeeze is coming quickly, which will lead to higher prices and demand destruction if the Strait of Hormuz is not reopened soon. The economic impact, previously confined to asset prices, is poised to become a more substantial macroeconomic problem.
•An oil inventory squeeze is imminent if the Strait of Hormuz remains closed.
•This will likely force consumption rationing through higher prices and subsequent demand destruction.
•The economic impact from the oil market has so far been a drag on asset prices.
•The situation could escalate from an asset price issue to significant macro-level pain without a diplomatic resolution.