Rory Johnston: This is When Oil Prices Will Shoot Higher | Demand Destruction

Strait of Hormuz closure creates severe global energy supply shock, requiring complex rerouting efforts and causing significant total production losses.

Demand destruction emerges as primary market mechanism to rebalance supply deficits, with price reactions heavily dependent on intervention timelines.

Geopolitical tensions involving Iran, Israel, and the Trump administration create war incentives and potential US Treasury market interventions.