Why is Closure Considered Possible (though unlikely long-term)? In Summary: The closure of the Strait of Hormuz would be an unparalleled economic and geopolitical shock. It would cause an immediate global energy crisis, trigger a deep recession, spike inflation, disrupt all global trade, massively increase shipping costs, and carry a very high risk of escalating into a major regional or even wider conflict. While perhaps not permanently sustainable for any actor, even a temporary closure would have devastating global consequences. It remains the single most significant potential flashpoint for the…
Read MoreThe closure of the Strait Harmuz” is likely a would be a catastrophic global event with severe and far-reaching consequences, primarily due to its role as the world’s most critical oil transit chokepoint. Here’s a breakdown of the major consequences:
