The Price of War
How the Strait of Hormuz Is Breaking the Global Economy
By Max from UNFTR.com
Several weeks ago, a narrow waterway twenty-one miles wide at its tightest point stopped the flow of one-fifth of the world’s oil. And now — even as a fragile ceasefire was announced with great fanfare — Israel launched what it called its most powerful strikes on Lebanon in the entire conflict. Within hours, the Strait of Hormuz was effectively closed to non-Iranian sanctioned tankers. Despite a fragile and likely non-existent peace agreement, the Strait is now being choked off on both sides as Donald Trump has now closed the other side of it.
Today I want to dissect what this means for the average consumer. Not for hedge funds. Not for energy traders. For you and me. For the price of food, the cost of goods, and the question that nobody in official Washington wants to answer honestly: how bad does this get before it gets better? Is there a chance it doesn’t get better at all this year?
