Economic lens
Energy
3 questions that expose connected mechanisms beneath this part of the world.
All lensesWhy does the Strait of Hormuz matter so much to the world economy?
Hormuz concentrates a large share of globally traded oil and LNG in a route with limited bypass capacity. A disruption changes expected availability, freight and insurance costs, so global prices can move even for countries buying elsewhere.
5 min LeverWhy did Europe depend so heavily on Russian gas?
Nearby pipeline gas was commercially attractive and became embedded in power, heating, industry, long-term contracts and infrastructure. Replacing it required scarce LNG, terminals, interconnectors, storage and demand reduction - not just a different seller.
5 min LeverWhy can energy prices affect almost everything else?
Energy powers transport, heating, machinery and many industrial processes. A price shock therefore raises direct household bills and the cost of producing and moving other goods. The final effect depends on energy intensity, contracts, substitution and how wages and expectations respond.