Source: Cato Institute
by Scott Lincicome
“Discussions of the Iran War’s economic effects understandably fixate on crude oil. The Strait of Hormuz, through which about 27 percent of the world’s seaborne petroleum supplies usually transits, has been effectively closed since the war started in late February, causing global oil and gasoline prices to spike — something both American drivers and politicians have surely noticed. … Yet the strait is a lot more than an oil pipeline, and the Iran War’s economic effects are about a lot more than just oil. Roughly 11 percent of global maritime trade transits the strait each year—a lot of it crude oil and liquid natural gas, yes, but also loads of minerals and energy-intensive commodities …. The Iran conflict has also spread beyond Iran and the strait itself, in the process threatening major Middle Eastern production and shipping hubs for other important goods.” (03/18/26)
https://www.cato.org/commentary/iran-war-could-hit-lot-more-oil