The Strait of Hormuz, a critical chokepoint for global oil and liquefied natural gas (LNG) supply, has become a flashpoint in the ongoing tensions between Iran and the United States. While the conflict has been a source of concern for the global economy, the article argues that Iran's influence over the strait will outlast the conflict itself, presenting a new 'nuclear option' for the country. This has significant implications for energy security and the global economy, as the world grapples with an already-reeling energy shock. The article delves into the potential consequences of a closed Strait of Hormuz, including the possibility of oil prices reaching $200 a barrel, and the challenges faced by countries in the region in diversifying their energy supply chains. It also explores the role of alternative energy infrastructure and the impact of Iranian attacks on these facilities. The piece concludes by emphasizing the need for the global economy to acknowledge the reality of Iran's influence over the strait and the potential for further disruption in the region.
