A New Global Energy Shock
When the United States and Israel launched their war of choice against Iran, the Islamic Republic pursued the most effective response at its disposal: triggering a spike in global energy prices by attacking Gulf energy infrastructure and blocking the flow of oil through the Strait of Hormuz. While the long-term effects on energy markets remain difficult to predict, US President Donald Trump has good reason to seek an off-ramp from a war opposed by most Americans, including his MAGA base. But with Israel committed to “total victory” and a defiant Islamic Republic now mining the strait, a cascade of global economic disruption appears increasingly likely.