Wealthion · Thursday, August 6, 2026
Steve Hanke explains that disruptions in the Persian Gulf have been cushioned by drawdowns in oil inventories, including the Strategic Petroleum Reserve. He warns that if the conflict continues and inventories remain low, it could lead to a significant price increase.
“Well, the the blow has been cushioned in a way because you you have to remember that coming into the market there there are two flows of crude oil come in.”
“So inventory is has made up for the deficiency coming from the Persian Gulf and and other producing areas and what you end up with you put the dipstick in the tank and bingo, there's nothing in it.”
“So so we have for example if you take the strategic petroleum reserve in the United States it's down to the lowest level it's been since 1983.”
“And and if the war continues or the strike continues to be plugged up both the the strait connecting the the Persian Gulf and as well as the strait connecting the Red Sea so you you've got things plugged up and and you you've got the inventories down at very low levels and and and the and the price of oil.”