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Renaud Foucart, Senior Lecturer in Economics, Lancaster University Management School, Lancaster University

The Strait of Hormuz shows how everything is now about leverage

lavizzara//Shutterstock

Iran’s military might was never going to be a match for the US and Israel. So instead it turned to the highly effective weapon it has at its disposal – geography.

Blocking off the Strait of Hormuz has shaken the global economy. It has doubled the price of a barrel of crude oil, which has a knock-on effect on the price the rest of the world pays for everything from fuel to heating and food to holidays.

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