The ongoing Iran war has led to a notable 9% drop in China's oil demand, as reported by JPMorgan, marking a significant shift in consumer behavior rather than a government-mandated reduction. Chinese consumers are increasingly opting for electric vehicles and public transport, which has contributed to lasting changes in oil consumption patterns. This trend may signal that the world has reached peak oil, where demand for crude oil may never return to previous highs. Historical precedents, such as the 1973 oil crisis, show that past oil shocks have resulted in permanent adaptations in energy consumption, including increased reliance on renewable energy and improved efficiency standards. Although the current demand decline is significant, with losses of up to 5.6 million barrels per day in recent months, the long-term effects of consumer shifts could lead to a permanent reduction in oil demand. However, the inelastic nature of oil demand in the short term suggests that industrial needs will continue to sustain some level of consumption, potentially offsetting these declines as countries seek to replenish their strategic reserves once the Strait of Hormuz reopens.