The Strait of Hormuz is the jugular vein of the world’s economic system. Iran has it in a chokehold and can put the knife across the Strait any time it chooses.

For the moment, the world is gripped by the incredibly destructive power that the US and Israel are unleashing on Iran.

Despite the early “successes”, however, the prospect of the ongoing closure of the Strait is triggering panic attacks among the people who know what is likely to happen next: Energy experts.

Several I follow have expressed amazement this week that the markets of US, Asia and Europe have not cratered at the prospect of Iran successfully maintaining an effective closure. My prediction: The current price spikes are just the beginning; an energy shock is coming and few of us are ready for its global, multifaceted effects.

The US-Israeli war on Iran could “bring down the economies of the world”, Saad al-Kaabi, Qatar’s energy minister warned this week.

Few seem to be heeding him as markets remain stable. He told The Financial Times that all energy producers in the Gulf will have to shut production within days and predicts oil will leap to $US150 a barrel, up from $US67 before the US launched its war of choice on Iran. Brent crude leapt to $US87 within a week of the first missiles going in. As I write, another spike has brought it to over $US100 a barrel.

All of us will suffer if the blockade of the Strait (Iran’s key weapon to stop the attack) leads to storage saturation,........

© The New Daily