An April 21 feature in London’s Economist magazine revels in the extensive damage to the global physical economy caused by London’s geopolitical warfare policies that are behind the ongoing U.S.-Israeli war of aggression against Iran. The headline is blunt: “Global energy markets are on the verge of a disaster; Scenarios now range from bad to awful.”
The article documents: “Fifty days into the Iran war the world has lost 550 million barrels of Gulf crude—nearly 2% of last year’s global output. Every month Hormuz stays closed, the world misses out on 7 million tons of liquefied natural gas (LNG), worth 2% of its annual supply.” They explain that the true economic pain has not yet been felt, because there was significant oil supply on the high seas when the war began, and some countries also had major stockpiles.
But no longer. “There is no buffer left to protect the world from the supply shock… To gauge how close the world is to energy catastrophe, The Economist has collected a dashboard of indicators. It shows grave harm has already been done. Worse, without a reopening, costs could soar, triggering events that cause the fuel system to seize up. A reopening of the strait now would—just—avoid calamity. But some additional pain is already inevitable.”
