Published on Mar. 10, 2026
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The ongoing war between the U.S./Israel and Iran has severely disrupted global energy markets, with the closure of the Strait of Hormuz cutting off 20 million barrels of oil per day. This has led to a surge in oil and gasoline prices, with ripple effects across the world economy. The crisis is complicating decisions for central banks like the Federal Reserve, as higher energy costs fuel inflation but also threaten economic growth. Economists warn of potential food shortages, especially in poorer countries, due to disruptions in fertilizer exports through the Strait.
Why it matters
The war with Iran has delivered a major shock to the global economy, with the closure of the critical Strait of Hormuz cutting off a significant portion of the world’s oil supply. This has driven up energy and food…
