Tension appears to be increasing between the U.S. and Iran amid the shaky two-week ceasefire from the war. Now the U.S. administration has imposed a naval blockade on Iran, which has essentially cut off the country’s international sea trade that powers about 90% of its economy.
The latest round of escalation involving the two countries and the vital Strait of Hormuz, which is essential for energy transport, has raised the possibility of disruptions to global energy supply. Effectively, the naval blockade of Iranian ports can exacerbate the supply crunch. Although Middle Eastern gas exports typically go to Asia, a prolonged blockade can create a supply shortage in Europe as well.
