Iran conflict exposes America’s Achilles’ heel

What we drew from this source

The claims Via News extracted from this document. We point to the source; we don't replace it.

• The United States hasn't built a new refinery since 1977 and has permanently shuttered more than 180 facilities

  80% confidence

• Fewer than 15% of trucking companies actively hedge fuel costs

  80% confidence

• If the Strait remains effectively closed, diesel could easily spike past $7-8 per gallon in premium markets within weeks

  80% confidence

• The U.S. imports roughly 200,000 barrels per day of diesel and heating oil, primarily from Canada, Russia (pre-sanctions), and Europe

  80% confidence

• The Strait of Hormuz handles 21% of global petroleum flows

  80% confidence

• The trucking industry consumes approximately 40 billion gallons of diesel annually

  80% confidence

• Building a new world-scale refinery would cost north of $10 billion and take 7-10 years, assuming regulatory approval

  80% confidence

• The trucking industry cannot survive sustained diesel prices above $6-7 per gallon without massive rate increases or widespread carrier failures

  80% confidence

• Between 2019 and 2023, the U.S. lost approximately 1 million barrels per day of refining capacity through permanent closures

  80% confidence

• A $1-per-gallon increase in diesel prices would add $40 billion in annual costs for the trucking industry

  80% confidence

• America's refining utilization rate has been running around 88-92% of capacity

  80% confidence

• U.S. crude production has recovered to near-record levels around 13.2 million barrels per day

  80% confidence

• The diesel crack spread has blown out past $40 per barrel in some markets during the current crisis, compared to historical average of $15-20 per barrel

  80% confidence

• The current Hormuz blockade has removed approximately 20 million barrels per day from global markets, the largest supply disruption ever measured

  80% confidence

• Diesel prices have surged past $5.96 per gallon in West Coast markets

  80% confidence

Cited in these Via News reports

• Strait of Hormuz Blockade Cuts 20M Barrels Daily, Largest Oil Disruption in History →
• Strait of Hormuz Blockade Cuts 20M Barrels Daily, Largest Oil Disruption on Record →
• Strait of Hormuz Blockade Cuts 20M Barrels Daily, Largest Oil Shock on Record →
• Strait of Hormuz Blockade Halts 20M Barrels Daily, One-Fifth of Global Oil Supply →
• Strait of Hormuz Blockade Removes 20M Barrels Daily, Largest Oil Disruption on Record →