Here's a rational explanation as to why the closing of the Strait of Hormuz is NOT an apocalyptic crisis. Although I'd add that some regions will be far more seriously impacted than others. The Far East, South-east Asia and Oceania being top of that list. China has stopped exporting fuels, which further restricts supply to the region.
Showing posts with label Singapore. Show all posts
Showing posts with label Singapore. Show all posts
March 08, 2026
March 07, 2026
Fuel Oil Supply Strangled
Something I overlooked is that fuel oil supplies for ships are being affected by the war in the Persian Gulf. The Middle East is a major supplier of the fuel oil required for ships, and Singapore is a major refueling point which imports its fuel oil from the Middle East. Fuel oil prices have therefore surged 30-40%, and supplies will run out toward the end of March.
The cost of goods will rise worldwide as shipping costs adjust upward, and some countries that rely on exports for their income may simply be unable to ship to their customers. Likewise, energy imports will be choked off.
Australia and New Zealand are two countries impacted, and the rest of the Far East as well.
The price of fuel oil has surged this week as the stalled tanker traffic at the Strait of Hormuz is tightening supplies of the fuel in Asia, the key bunkering hub for fuel oil used in ships.
The Middle East is a major global supplier of fuel oil, especially of high-sulfur fuel oil (HSFO). But the Iran war has all but halted traffic via the Strait of Hormuz, stranding supplies for Asia and its key bunkering hub of Singapore.
As a result, prices have soared and are set to continue rising, traders and analysts told Reuters on Friday.
April 17, 2025
December 05, 2024
Lee Kuan Yew
The man who created modern Singapore, Lee Kuan Yew bemoaned the rise of weak men into high office. Singapore is the world's most successful modern state, making Lee the greatest man of the post war era.
One of Lee's solutions was to pay political leaders well, which acted as a disincentive to be corrupt.
In the below video, Lee outlines the scale of the problem: