"Iran continues to block tankers from shipping close to 20 percent of the world's oil supply. That is roughly twice the disruption the world suffered during the energy shock of the 1970s."
"Big oil shocks have historically led to considerable economic turmoil, high inflation, stagnation and recession. Oil and gas prices are already surging, and economies are expected to slow."
"The longer it remains closed, the greater the damage to the global economy. From American consumers to Chinese factories and European households, people across the world are already feeling the effect."
Iran's disruption of the Strait of Hormuz blocks approximately 20 percent of the world's oil supply, creating an energy crisis twice as severe as the 1970s oil shock. This blockade causes oil and gas prices to surge globally, threatening economic stability across major economies. Historical precedent shows major oil shocks trigger inflation, economic stagnation, and recession. The disruption already impacts American consumers, Chinese factories, and European households. Prolonged closure of the strait intensifies damage to the global economy, with widespread economic slowdown expected as energy costs continue rising.
#energy-crisis #oil-supply-disruption #strait-of-hormuz #global-economic-impact #inflation-and-recession-risk
Read at www.aljazeera.com
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