Strait of Hormuz Refined Fuel Demand Decline: The 2026 Crisis

The closure of the Strait of Hormuz in 2026 has caused a sharp decline in refined fuel demand, leading to significant shifts in the fundamental assumptions of the global energy market. This is not merely a demand recession but a structural contraction due to physical supply constraints, surpassing the levels seen during the 2008-09 financial crisis. Markets, governments, and industries must carefully consider responses.