$200 Oil: The Crisis That Could Crack the Global Financial System

The $200 Oil Warning Shot The global economy runs on energy, and roughly one-fifth of the world’s oil supply flows through a narrow, 22-mile-wide maritime chokepoint: the Strait of Hormuz. Right now, that chokepoint is effectively shut down. Iran’s leadership has declared the closure of the strait a strategic weapon, openly stating it intends to use the disruption to pressure its enemies. Oil tankers have already been attacked, shipping companies are pulling vessels out of the region, and energy traders are bracing for the next phase. Some analysts are now warning that oil could spike toward $150 or even $200 per barrel if the blockade persists. If that happens, the consequences will not be limited to gas prices. They will…