Iran closure of Strait of Hormuz could affect exports worth $1TRILLION

"According to their simulations, exports worth up to $1.2 trillion could be affected if Iran keeps the Strait closed for an extended period. While short disruptions of around two weeks would have limited consequences, blockages longer than four weeks could trigger 'cascading issues'."

"The researchers say that this creates a 'genuine vulnerability' that Britain won't be able to substitute its LNG supply in the short term, driving up prices for consumers."

"What is unique about the Strait is that there are no alternatives to reroute goods. This makes it distinct from other strategic maritime passages."

The Strait of Hormuz is vital for global energy supply, and its closure could severely disrupt supply chains. Research indicates that if Iran maintains a blockade for over four weeks, it could lead to cascading issues, particularly affecting the UK, which imports $12 billion worth of goods through this route annually. The study highlights the unique vulnerability of the UK due to its reliance on liquefied natural gas from the region, emphasizing the lack of alternative routes for shipping.

Read at Mail Online