Iran's Hormuz blockade will hurt friend and foe alike
Iran's blockade of the Strait of Hormuz is having far-reaching consequences for the global economy, with poorer nations and emerging economies facing inflation and instability. The blockade is affecting the supply of oil, natural gas, and vital chemical products, with around 90% of India's liquefied petroleum gas usually passing through the strait.
Iran's blockade of the Strait of Hormuz is causing turmoil in global energy markets. The strait is a vital waterway through which a fifth of the world's oil and significant amounts of natural gas and chemical products pass. Iran's disruption has already had global consequences, with wealthy countries able to weather price shocks but poorer nations and emerging economies facing inflation and instability. The blockade is affecting the supply of liquefied petroleum gas, used for cooking, in countries like India. The International Monetary Fund has warned that a 10% increase in oil prices could raise global inflation and reduce economic growth. Iran's actions are being seen as economic terrorism, punishing the economies of its trade partners.
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