🌐 Global Economy
Apr 16, 2026
Supply Disruptions and Energy Security
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The Issue:
As the war in Iran continues, the costs and risks to the global economy are mounting. Central to these risks are constraints on the safe flow of oil by tankers through the narrow Strait of Hormuz. In good times, about one-fifth of world oil supply travels the Strait. Iran has allowed some ship-borne cargoes destined for China, India and a few other nations but the United States is now instituting its own blockade of these ships. At the war’s peak of disruption (so far), about 8 percen
As the war in Iran continues, the costs and risks to the global economy are mounting. Central to these risks are constraints on the safe flow of oil by tankers through the narrow Strait of Hormuz. In good times, about one-fifth of world oil supply travels the Strait. Iran has allowed some ship-borne cargoes destined for China, India and a few other nations but the United States is now instituting its own blockade of these ships. At the war’s peak of disruption (so far), about 8 percen
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