The Strait of Hormuz is closed, the world could potentially lose 20% of global oil consumption from that oil route.
Asia itself consumes 80% - 84% of oil from that route. With the closure of this route, inflation in Asia will sharply increase if it remains closed for an extended period.
Meanwhile, the average resilience of countries in Asia varies significantly. Japan is around 140 days, South Korea 90 days, China 80 days, while other countries range from 15 - 75 days.
This instability could trigger very significant inflation, or perhaps there could be a shift in trade that makes it an alternative option. For example, Venezuela.
$PAXG $BTC #GOLD
Asia itself consumes 80% - 84% of oil from that route. With the closure of this route, inflation in Asia will sharply increase if it remains closed for an extended period.
Meanwhile, the average resilience of countries in Asia varies significantly. Japan is around 140 days, South Korea 90 days, China 80 days, while other countries range from 15 - 75 days.
This instability could trigger very significant inflation, or perhaps there could be a shift in trade that makes it an alternative option. For example, Venezuela.
$PAXG $BTC #GOLD