The Cost of Oil & Gas
History does not often repeat but it does tend to rhyme. On February 28, the United States and Israel launched an attack against Iran. In response, Iran has retaliated with large scale attacks against US bases and infrastructure in the region and has also made it extremely difficult for cargo ships to transit the Strait of Hormuz. The Strait of Hormuz is a critical waterway in the Middle East in which 20% of the world’s oil and gas passes through in addition to other products like helium used in the manufacturing of semiconductors and fertilizer used in the production of agricultural products. Iran’s closing of the strait has had major implications for not only the United States but also for the rest of the world. Many political and economic pundits are assessing the long-term implications of this conflict. However, we can use history as a guide to foresee not only the effects this conflict could have on the economy but also the effects this conflict could have on the politi...