economy
March 13, 2026
We Would Be Entering a Completely Different World
The Iran war has already created the “largest supply disruption in the history of the global oil market,” according to the International Energy Agency, and the situation could still get much worse. Iran has vowed to sink any ship trying to pass through the Strait of Hormuz, the waterway responsible for carrying a fifth of the world’s oil supply. And according to The Wall Street Journal, the U.S. Navy has turned down requests to escort ships through the strait, deeming such efforts too dangerous. In a Wednesday interview with Fox News, Secretary of Energy Chris Wright said that the strait would reopen “hopefully in the next few weeks.” Note the adverb.
TL;DR
- The Iran war has caused the largest supply disruption in the global oil market's history.
- Iran threatens to block the Strait of Hormuz, which carries a fifth of the world's oil supply.
- Oil prices could surge to $200 a barrel, potentially triggering a global recession.
- Higher oil prices could benefit Russia by increasing government revenue and leverage.
- China might strengthen its geopolitical position due to its oil reserves and investments in alternative energy.
- A prolonged crisis could shift global reliance towards China for renewable energy technologies.
- The U.S. economy faces higher prices across sectors and risks a recession if consumer spending plummets.
- The Federal Reserve might be constrained in its ability to stimulate the economy due to inflation fears.
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