Iran war: the world could be heading for "global depression" | Economics | The New Statesman

The New Statesman analyses the potential global economic impact should conflict involving Iran lead to the throttling of the Strait of Hormuz. The strait is a critical maritime chokepoint through which approximately 15-20% of the world's oil supply passes. Recent escalations involving Iran attacking commercial shipping in the area have already contributed to a spike in crude oil prices, exceeding £75 per barrel. Market researcher Rory Johnson discusses scenarios where sustained closure of this route could result in a global depression rather than just a recession.

Johnson details that prolonged disruption in oil transit would cause an acute price shock in advanced economies, leading to a significant reduction in disposable income for consumers. The discussion focuses on the severe negative consequences for the global economy stemming from geopolitical instability affecting vital energy supply routes near Iran.