Schrödinger's Strait and the New Energy Order | Daniel Yergin

Global energy markets have demonstrated unexpected resilience during recent geopolitical crises, including the war in Ukraine and tensions in the Strait of Hormuz, by rapidly reconfiguring supply chains and leveraging strategic reserves. Daniel Yergin, a leading authority on energy and geopolitics, attributes this stability to the United States' transition from the world’s largest oil importer to its largest exporter, alongside China’s aggressive build-up of energy inventories and its strategic pivot toward electric vehicle dominance. While the Strait of Hormuz remains a critical maritime chokepoint, the emergence of a gray zone between conflict and peace has prevented predicted catastrophic market disruptions. Moving forward, nations are increasingly prioritizing energy security through domestic inventory management and grid modernization, as the era of easy globalization fades and regional actors seek greater autonomy in an increasingly fragmented global order.