Lesson Learned From Iran War: Reduce Reliance on Strait of Hormuz

The New York Times  |  Peter Eavis

When Iran shut down the Strait of Hormuz during its war with the United States and Israel, countries and companies responded effectively, preventing oil prices from reaching stratospheric levels and shielding most economies from major shocks. More oil was pumped through pipelines, and nations globally released their oil reserves, mitigating a global shortage.

Countries in Asia, particularly hard-hit, took steps to consume less fossil fuel and increase green energy sources. In recent weeks, the U.S. military also helped tankers pass through the waterway. These collective actions ensured the price of oil, which closed at $73.74 a barrel, soared but never reached levels that could have led to a global recession. Experts, including Vidya Mani, an associate professor at the University of Virginia, now believe these measures can be built upon to make the world much less vulnerable to any future Iranian effort to close the strait, reducing its criticality as a choke point.

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