The global economy faces unprecedented turbulence as the Strait of Hormuz remains closed since February 28, 2026, following military actions by the US and Israel against Iran. This critical shipping lane – handling 30% of the world’s seaborne oil – has sent shockwaves through markets, with Brent crude soaring past $99/barrel 🚨. Energy expert Adi Imsirovic warns traders see "no light at the end of the tunnel" due to unclear war objectives.
G7 nations are deploying 400 million barrels from strategic reserves – the largest emergency release ever – but prices keep climbing. The crisis now extends beyond oil: aluminum hit a 4-year high 📈, threatening manufacturing and aerospace sectors, while fertilizer prices spike (1/3 of global supply passes through Hormuz). This could devastate crops like corn and wheat, worsening food insecurity in regions like Lebanon where the World Food Programme reports "significant internal displacement."
Asian markets reflect the strain: Japan’s Nikkei fell 1.16% Friday, while South Korea’s KOSPI dropped 1.72%. Thailand’s 2026 GDP growth could be halved to 1% if the conflict persists, per University of the Thai Chamber of Commerce projections 📉. With no resolution in sight, governments brace for prolonged economic fallout.
