Since late February, Iran has effectively closed the Strait of Hormuz — the narrow waterway through which roughly 20 percent of the world’s oil supply normally flows. The International Energy Agency calls it the greatest threat to global energy security in history. Brent crude has surged past $100 per barrel. Europe faces diesel shortages. Asia is rationing fuel.

And the United States, for the first time in decades, finds itself in a position of genuine energy advantage.

This did not happen by accident.

What the Hormuz Crisis Has Exposed

The Strait of Hormuz is only 21 miles wide at its narrowest point, surrounded on three sides by Iranian territory. Every major oil economy in Asia — China, Japan, South Korea, India — depends on it. About 80 percent of the oil and gas transiting the strait was headed to Asian markets. Qatar’s LNG exports, which supply 12 to 14 percent of Europe’s natural gas, also flow through it.

When Iran closed the strait, approximately 11 million barrels per day of crude production had to be shut in — producers filling their storage with oil that had nowhere to go. The EIA estimates production outages will peak at 9.1 million barrels per day in April. The global inventory is drawing at 5 to 6 million barrels per day. Prices will remain elevated until the strait reopens and supply normalizes — a process analysts say could take until July or later.

Why Conservative Energy Policy Was Right All Along

Conservatives have argued for decades that American energy independence is not just an economic priority but a national security imperative. They were right — and the Hormuz crisis is the proof.

The argument was simple: a nation that controls its own energy supply cannot be held hostage by hostile regimes or unstable regions. A nation that depends on foreign oil for its economic lifeblood is a nation that can be coerced, threatened, or disrupted by anyone willing to mine a strait or close a chokepoint.

The United States produces approximately 13.7 million barrels of oil per day — the most of any country on earth. It is the world’s largest LNG exporter. American shale technology, developed by private companies through private investment without government direction, is the reason this country has options right now that no other major economy can match.

What the Trump Administration Has Done

Since taking office, the Trump administration has approved more than 6,000 drilling permits — the most in fifteen years. It has moved aggressively to unlock Alaskan reserves, restart offshore leasing in the Gulf of America, and expand LNG export capacity. New terminals at Plaquemines LNG and Golden Pass LNG are coming online, with total export capacity projected to reach 16.3 billion cubic feet per day by the end of 2026.

The result: U.S. LNG facilities are running at near-peak capacity. Asian buyers that cannot get LNG through the Strait of Hormuz are actively seeking American contracts. The market signal could not be clearer.

The Lesson

Energy independence is not isolationism. It is leverage. It is the difference between watching a crisis unfold from a position of strength and watching it unfold as a victim.

This week, American Foundations will dig into exactly how American energy is reshaping global markets — and what it means for your wallet, your country, and the world.