Svmuu News The oil shock from the closure of the Strait of Hormuz has yet to cause a demand collapse, as wealthy nations tap into inventories and secure supplies at high prices. But traders are now warning: a severe demand contraction is imminent. Traders indicate that the longer the Strait of Hormuz remains closed, the more consumption will need to adjust downward to match a supply reduction of at least 10%. Achieving this will require people to reduce purchases, either through unaffordable prices or through government-imposed measures to curb consumption. Saad Rahim, Chief Economist at Trafigura Group, said that demand destruction is occurring in those non-visible pricing centers. This contraction is already happening, and if the situation persists, the scale of demand reduction will only grow larger. We are at a critical turning point. (Jin Shi)