This War Changes Everything: Are We Ready for Energy Shockwaves From the Strait of Hormuz? with Rory Johnston

About this episode

Nate Hagens and Rory Johnston discuss the impending global energy crisis and its implications.

Over three-quarters of the global population has never lived through a major global energy crisis, such as those of the 1970s. In early 2026, that is about to change as the world faces the largest energy disruption in history, measured by the daily loss of oil output. This crisis won't be evenly distributed but will be felt everywhere – and is guaranteed to have ripple effects we won't see coming. How much oil remains in circulation, and what level of damage has already been inflicted on our global energy infrastructure? In this episode, Nate is joined by oil market analyst Rory Johnston to discuss how the Strait of Hormuz closure has led to the largest oil supply shock in history, and what the exact numbers and cascading effects are. He also breaks down the primary strategies countries will have to use to adapt to energy losses, including resorting to demand destruction, and what the disastrous risks are if shortages are allowed to persist. Rory also explains the lag between the closure, the real world impact of oil not being able to enter global circulation, and the market's response. Ultimately, Rory and Nate explore the impact of this situation on international trust and…

People in this episode

Host: Nate Hagens

Guest: Rory Johnston

Topics covered

• energy crisis
• oil supply
• global disruption
• international trust
• market response
• adaptation strategies

Keywords

• energy shockwaves
• oil output
• demand destruction
• global energy infrastructure
• market response
• international cooperation
• energy winners and losers

Mentioned in this episode

Places: Strait of Hormuz

More episodes of The Great Simplification with Nate Hagens

• How to Think About the Future (Part 2): Four Variables Shaping the Coming Decades | Frankly 139 · April 24, 2026 · 33 min
• Wisdom in a World in Crisis: The Counterintuitive Need to Slow Down and Find Spaciousness with Iain McGilchrist · April 22, 2026 · 2h 8m
• How to Think About the Future (Part 1): Changing the Future Starts with How You Think | Frankly 138 · April 17, 2026 · 32 min
• The Fantasy of Space Colonization: The Spaceship We're Already On with Tom Murphy & DJ White | RR 24 · April 15, 2026 · 1h 36m
• Oil 301: The World After Cheap Energy | Frankly 137 · April 11, 2026 · 16 min
• Oil 201: What Happens When the Oil Stops Flowing | Frankly 136 · April 10, 2026 · 14 min