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Jonathan Kraut | The Global Impacts of Cutting off the Strait of Hormuz

10 0
21.04.2026

As Donald Trump’s loose cognitive associations cause his messages to meander, his mind to wander, and his objectives to change from moment to moment, the world economy is about to collapse into chaos as it faces energy uncertainty. 

Most of Asia and part of Europe rely on liquefied natural gas to power their cities and industry, primarily supplied by Qatar. Singapore’s entire industrial base is vulnerable to collapse without Qatar’s natural gas supply. 

This example shows how resources from one little country can impact half the industrialized world. 

What if one fifth of the world’s oil supply, one third of all fertilizers, and 20% of the world’s liquefied natural gas all passes through Iranian-adjacent waters to get to the rest of the planet? Is there a foreseeable risk to the world’s smooth economic engine if all at once access to these resources suddenly cease? 

Such is the case regarding the Strait of Hormuz. 

Iran’s critical positioning at the strait is the one diplomatic card Iran has — a key to its political survival. Stopping this supply route will damage the economic system globally in a matter of weeks. 

Almost anything shipped by sea, rail, or truck is powered by diesel.........

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