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Economic lens
Energy
5 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.
5 min LeverWhy is LNG changing the geopolitics of gas?
LNG is natural gas cooled for shipment and converted back at import terminals. It lets buyers and sellers connect across oceans rather than only through pipelines, but liquefaction plants, tankers and regasification terminals remain expensive bottlenecks.
5 min LeverWhy does natural gas affect fertilizer and food prices?
Nitrogen fertilizer production uses natural gas both as an energy source and as a feedstock for ammonia. A gas-price or supply shock can therefore reduce fertilizer output or raise its price, squeezing farm margins and influencing later planting, application and food supply.