How the world is preparing for oil shortages

The FT News Briefing explores the global implications of a prolonged closure of the Strait of Hormuz following the U.S.-Iran war, which has disrupted oil exports from the Gulf region. Gulf states like Abu Dhabi, Qatar, and Kuwait are turning to private debt markets to raise nearly $10 billion for reconstruction, as public markets remain uncertain. With the last pre-war tankers now reaching their destinations and no peace agreement in sight, countries are already experiencing oil shortages—India has felt the impact for weeks, while others are beginning to deplete strategic reserves. Governments are responding with demand containment measures: the U.S. has released from strategic stockpiles, Australia is promoting fuel savings, and nations like Bangladesh and Cambodia are limiting energy use. Experts warn that prolonged disruption could accelerate the global shift to renewables and electric vehicles, while also exposing vulnerabilities in global supply chains and fueling inflation. Meanwhile, China’s growing dominance in high-end manufacturing—particularly in EVs, solar panels, and batteries—is triggering alarm in Europe and the U.S., with critics citing state subsidies, currency undervaluation, and overcapacity as key drivers. The European Commission has launched a new body to monitor Chinese imports, and French President Macron has called the situation an existential threat to European industry. On a lighter note, the podcast also covers the dramatic fall and AI pivot of Allbirds, whose stock surged 800% after its new owner rebranded it as an AI company, turning it into a meme stock phenomenon.