An Ormuz Crisis Would Weigh Less in a Decarbonized Economy

The Strait of Ormuz remains one of the world's most strategic energy arteries. Roughly one-fifth of globally traded oil transits through this narrow corridor linking Gulf states to the rest of the world. When tensions rise in the region — as with the current escalation between the United States, Israel and Iran — energy markets react immediately, triggering a cascade of inflationary effects across global economies.