The U.S.-Israeli war on Iran is quickly spiraling into a worldwide energy crisis as the de facto closure of the Strait of Hormuz forces top oil producers to start slashing output.
The seeds of the crisis go back to the late 1970s when Iranian oil workers went on strike and the revolution ushered in the Islamic Republic, Daniel Yergin, vice chair of S&P Global and the author of The Prize: The Epic Quest for Oil, Money & Power, wrote in a Financial Times op-ed this weekend.
“One legacy of all this has been the nightmare scenario of the oil that flows through the Gulf being interdicted by an extended and destructive war,” he added. “The fear? That this will result in skyrocketing energy prices that send the world economy plummeting into a deep recession. Ever since the war in Iran began a week ago, Tehran has done everything it can to turn this into reality.”