THE recent tensions around the Strait of Hormuz have once again exposed a fundamental vulnerability in the global energy system: an overwhelming dependence on a narrow maritime corridor through which nearly one-fifth of the world’s oil and gas supplies transit.

Any disruption—whether real or anticipated—triggers immediate shocks across international markets. Yet, beyond the headlines and price spikes, the deeper issue is structural. The Hormuz crisis is not merely a geopolitical flashpoint; it is a stress test of the world’s energy architecture. For decades, global energy flows have been optimized for efficiency rather than resilience. Oil-rich states in the Gulf, particularly those bordering Iran and its neighbors, have served as the backbone of supply, while major importers across Asia and Europe have built their economies around uninterrupted access to these resources. The result is a highly interconnected but fragile system, where a single chokepoint can reverberate across continents.

When tensions escalate in and around Hormuz, the immediate consequence is a surge in oil prices. Markets react not only to actual supply disruptions but also to perceived risks. Insurance premiums for tankers rise, shipping routes become uncertain and speculative trading amplifies volatility. These dynamics feed directly into global inflation, increasing the cost of transportation, manufacturing and food production. For economies already grappling with post-pandemic recovery and geopolitical fragmentation, such shocks can be destabilizing. However, the implications are far more severe for........

© Pakistan Observer