Source: Ludwig von Mises Institute
by Lucas Peters
“The ongoing destruction of the world’s largest natural-gas reservoir at South Pars and Qatar has produced exactly what Austrian economics predicts: sudden, irreplaceable capital destruction followed by a violent supply shock. Oil has spiked, European gas prices have jumped, and the Strait of Hormuz is now a flashpoint. Everyday Americans already face higher gasoline, heating, trucking, and grocery costs; businesses confront malinvestment cascades; and central planners are salivating over the opportunity to impose rationing, digital IDs, CBDCs, and ‘energy lockdowns.’ This is not mere geopolitics; it is state warfare smashing the capital structure and then using the resulting artificial scarcity to expand control. From a strict libertarian and Austrian standpoint, two interlocking ideas cut through the chaos and point to the only workable solution today: immediate, total disentanglement from the conflict, and uncompromising reliance on free-market prices, sound money, and voluntary exchange instead of any form of central planning.” (03/31/26)
https://mises.org/power-market/austrian-fix-manufactured-iranian-energy-crisis