S6: Will Iran disrupt the global economy?

Last Friday, Qassem Soleimani, head of the Iranian Revolutionary
Guards’ QUDS force, was killed by an American airstrike outside
Baghdad airport. Tehran has promised to retaliate. At the time of
recording, the world is still waiting to see how Iran will
respond. Some have speculated that they could disrupt the world’s
oil markets by closing the Strait of Hormuz, which acts as a
vital artery for around a third of the world’s liquefied natural
gas and almost a quarter of the world’s oil. Today, oil prices
surpassed $70 a barrel and if tensions continue to escalate the
price is bound to grow. How dependent is the global economy on
affordable Middle Eastern fossil fuel? This week, Nicholas
Barrett is joined by Maria Demertzis and Niclas Poitiers to
discuss how the US-Iran hostilities are affecting the global
economy.