Hormuz Crisis Reveals Energy as the Economy’s Hidden Master Resource

The potential closure of the Strait of Hormuz could erase roughly 4% of global energy daily, triggering sharp oil and LNG price moves and cascading knock-on effects—from higher plastics and fertilizer costs to pricier air travel—that risk pushing the world toward a severe recession. The piece argues that energy is the master resource economists often ignore, and proposals that a 10% energy shortfall would barely dent output underestimate the true, widespread economic damage.