The 'doomsday' scenario for fuel supply

This episode of ABC News Daily examines the escalating global fuel crisis triggered by Donald Trump's blockade of Iranian ports in the Strait of Hormuz, which has intensified an already precarious oil supply situation. Energy expert Sol Kavanagh explains that the blockade has removed an additional 1% to 2% of global oil supply—equivalent to the demand drop seen during the 2020 pandemic—while increasing the risk of direct attacks on oil infrastructure. Australia, heavily reliant on fuel imports via Singapore, faces growing uncertainty despite diplomatic efforts and government demand management campaigns. The real crunch is expected in May, as the last pre-war tankers arrive, and supply disruptions could lead to rationing, particularly in jet fuel and diesel, with cascading effects on air travel, agriculture, and everyday goods. The episode underscores that oil prices will not return to pre-war levels for at least one to two years, marking a permanent shift in the global energy landscape.