Why does Daniel Yergin call the Strait of Hormuz crisis 'the biggest energy disruption ever,' and what makes it distinct from past oil shocks?

Daniel Yergin calls the Strait of Hormuz crisis 'the biggest energy disruption we’ve ever seen' not because oil prices have reached inflation-adjusted historical highs, but because its impact extends far beyond crude oil to critical global supplies of natural gas, fertilizer, helium, aluminum, and petrochemicals — a breadth of disruption unprecedented in scale. Crucially, Asia bears the overwhelming brunt, with '80% of the oil, 90% of the LNG went to Asia,' meaning shortages there directly translate into real-world consequences like rationing, business closures, and restaurants shutting down — revealing a stark 'divergence' between resilient financial markets and the physical energy scarcity experienced on the ground. Unlike prior oil shocks centered mainly on price spikes or supply curtailments in one commodity, this crisis manifests as a systemic, multi-commodity chokepoint with geopolitical dimensions: a 'clash between two blockades' — US economic pressure on Iran versus Iran’s capacity to 'wage war on the world economy' by threatening the flow through the Strait.

What long-term strategic shifts does Yergin predict as a result of this crisis, and what evidence does he cite for acceleration in those trends?

Yergin predicts the crisis will drive 'a bigger focus on energy security' among Gulf countries and accelerate the global transition to electric vehicles. He cites concrete, near-term evidence for the latter: '20% of the cars built in the world this year will be electric vehicles,' and he explicitly states that 'that’s gonna get a tick up from this, certainly' — indicating the disruption will intensify policy attention, investment, and consumer adoption around electrification. For Gulf nations, the emphasis on energy security reflects the vulnerability exposed by dependence on a single maritime chokepoint; though the article does not detail specific measures, Yergin’s framing implies diversification of export routes, infrastructure hardening, domestic energy resilience planning, and possibly accelerated clean energy investments — all motivated by the acute risk revealed when 'inventories are drawn down' and 'the longer this goes on, the more the risk on the upside grow.'

Hormuz Crisis Called 'Biggest Energy Disruption Ever,' Yergin Says

Apr 25, 2026

S&P Global's Daniel Yergin warns the Strait of Hormuz crisis constitutes the largest energy disruption ever, severely impacting global supplies of oil, gas, and petrochemicals while accelerating energy security concerns and EV adoption in Asia.

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