"A week ago or certainly two weeks ago, I would have said: If the war stopped that day, the long-term implications would be pretty small. But what we're seeing is infrastructure actually being destroyed, which means the ramifications of this war are going to be long-lived."
"The loss of 20 million barrels of oil a day delivered what the International Energy Agency calls the largest supply disruption in the history of the global oil market."
"Historically, oil price shocks like this have led to global recessions."
"The war also has dredged up a bad economic memory from the oil shocks of the 1970s: stagflation."
U.S. and Israeli military actions against Iran have escalated oil prices and destabilized the global economy, forcing developing nations to ration fuel. Ongoing attacks on Persian Gulf infrastructure threaten prolonged economic distress. The destruction of critical energy infrastructure, such as Qatar's natural gas terminal, will have lasting effects. The closure of the Strait of Hormuz by Iran has caused significant oil supply disruptions, leading to the largest supply crisis in history. Oil prices have surged dramatically, raising concerns about potential global recessions and economic stagnation reminiscent of the 1970s oil shocks.
Read at Fortune
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