Economists: The shock from the closure of the Strait of Hormuz is about to crush demand.

CoinFeed reported on April 25th that, according to Jinshi, the oil shock from the Strait of Hormuz has not yet led to a demand collapse because wealthy countries are using their inventories and securing supply at high prices. However, traders are now warning of a severe demand contraction. Traders say the longer the Strait of Hormuz remains closed, the more consumption will need to adjust downwards to match at least a 10% drop in supply. To achieve this, people will have to reduce purchases, either through unaffordable prices or through government intervention to suppress consumption. Trafigura Group's chief economist, Saad Rahim, stated that demand destruction is occurring in those intangible pricing centers. This contraction is already happening, but if it continues, the scale of the demand contraction will only increase. We are at a critical turning point.