The war with Iran: what does the disruption in the Strait of Hormuz mean for global energy?
About this episode
The episode discusses the impact of the war with Iran on global energy supply and markets, focusing on the disruption in the Strait of Hormuz.
Tanker traffic dries up, oil, gas and fertilizer prices soar, and the world holds its breath The Strait of Hormuz has long been discussed as one of the single greatest vulnerabilities in global energy supply. Now the risk has become reality. Host Ed Crooks is joined by Amy Myers Jaffe, Director of NYU's Energy, Climate Justice and Sustainability Lab, and Chris Aversano, Director of Maritime Partnerships at Wood Mackenzie, to assess what the disruption means for energy markets, supply chains, and the people at the centre of it all. Oil prices briefly spiked to around $119 a barrel before falling back. European natural gas prices have nearly doubled. But those numbers only tell part of the story. In normal times, between 150 and 175 ships would pass through the Strait of Hormuz every day. Since the war began, that has fallen to perhaps 10 to 12 a day. The Strait is a vital artery for the world’s energy and fertilizer supplies. If it is blocked for long, the results could be catastrophic. Amy puts the market's reaction in context. She has been studying the Strait of Hormuz since the 1990s, and says that although the geography is still the same, the technology is different. The…
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