WITH the Strait of Hormuz caught in a dangerous limbo, the global energy markets have entered the most uncertain period of their history. Last month, the International Energy Agency predicted that both oil supply and demand growth would be slow compared to last year.

This suggests not just supply disruptions but also a weakening global economy. Oil markets are responding to the lingering crisis through volatility, shortages and rising prices. The IEA warning that demand destruction will spread points to a grim reality: high prices are constraining economic activity, particularly in nations dependent on imported energy such as Pakistan.

Iran’s control over the choke point has already triggered what the IEA says is the largest supply disruption. Compounding........

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