The renewed disruption around the Strait of Hormuz is the most consequential whole-system story right now. It affects oil and gas supplies, shipping insurance, diesel, aviation, fertilizer, farming costs, food prices, inflation and government budgets.
Traffic through the strait has fallen sharply following renewed attacks on shipping, while oil prices reached a one-month high. The strait normally carries roughly one-fifth of global oil supplies and substantial fertilizer and liquefied natural-gas shipments. Fertilizer disruption is already increasing costs for farmers and threatening future harvests.
Mobilized angle: A conflict in one maritime corridor can increase the cost of food, transportation and electricity thousands of miles away.
Solutions to feature: Distributed renewable energy, regional fertilizer production, regenerative agriculture, local food systems, strategic reserves, diversified shipping routes and reduced dependence on imported fossil fuels.