Author: Aya S. Chacar

The global energy crisis caused by the closure of the Strait of Hormuz is only the beginning of the economic cost of the war with Iran. I study how institutions affect businesses and supply chains, and I expect food prices to rise next, with high prices lasting even after whatever point hostilities end. Along with about 20% of the world’s crude oil trade and a similar share of the world’s liquefied natural gas shipments, shipping traffic through the strait also carries roughly a third of internationally traded fertilizer, which is key to bountiful crops around the world. Modern agriculture depends…