For every CEO, investor, and policymaker reading the headlines today, the math is becoming terrifyingly simple: when oil tests the $90-per-barrel point, the global economy begins to fracture.
We have long been taught that energy security is a matter of geography, defined by who owns the land, who controls the straits, and who signs the treaties. Now the Strait of Hormuz, a key chokepoint for the global oil trade, has been shut by Iran’s Revolutionary Guard following the U.S. and Israeli airstrikes that began on February 28. Tanker traffic has ground to a near halt, 20% of global supply has been paralyzed, and the old-world energy order has been shaken.
