NEW YORK—The closure of the Strait of Hormuz has triggered what the International Monetary Fund calls a “global yet asymmetric” rupture, disrupting the flow of roughly one-quarter of oil, one-fifth of liquefied natural gas, and one-third of fertilizer supplies. Energy and fertilizer prices have risen, supply chains have rerouted, and financial conditions have tightened unevenly around the world.

Balint Szentgallay/NurPhoto via Getty Images Politics 0 Can Hungary Reverse Course? Stephen Holmes warns that the system Viktor Orbán has created means that losing an election may not mean relinquishing power.

Can Hungary Reverse Course?

Ulet Ifansasti/Getty Images Longer Reads 0 The Energy Transition Has Its Own Strait of Hormuz Dianne Araral & Eduardo Araral caution that escaping one form of geopolitical vulnerability does not eliminate the influence of geopolitics.

The Energy Transition Has Its Own Strait of Hormuz

Nikolay Doychinov/AFP via Getty Images Economics 0 The Fall of Gazprom Sławomir Sierakowski sees the collapse of Gazprom’s market capitalization as a microcosm of broader economic dynamics.

Import-dependent economies in Asia, Africa, and parts of Europe have been hit hardest, with many facing higher bond spreads and credit downgrades. As central banks weigh their responses to surging fuel and food prices, the rise in global interest rates is squeezing what little fiscal and policy space developing countries still have.

But if the “Hormuz shock” has laid bare economic vulnerabilities, it has also illuminated something else: the stark differences in how countries absorb turbulence. One of the most salient fault lines in the world nowadays is not simply between oil-exporting and oil-importing countries, but between countries whose energy systems leave them exposed and those who began building energy resilience long before the crisis........

© Project Syndicate