Threats to oil shipping routes are nothing new to the oil market. It has endured Iran seizing tankers in the Strait of Hormuz, and it has endured Iran’s repeated threats to close this most important chokepoint in the world.
But what the oil market is perhaps not prepared to shrug off are similar threats made by one of the world’s largest oil consumers–India–to choke off the oil that is making its way to China. China’s oil imports continue to give support to the muted oil rally.
Now, the recent hostility that erupted between two of the world’s biggest oil importers – the two largest in Asia, China and India – could increase security threats along the second most important oil chokepoint in the world, the Strait of Malacca.