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The nightmare Iran energy scenario is becoming reality
A longer war means a harsher global economic fallout.
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Smoke rising in the UAE's Fujairah oil industry zone after debris from an intercepted drone set off a fire, on March 3.
PHOTO: REUTERS
The Economist
Energy analysts modelling a war involving Iran have long feared two developments: the Islamic Republic lashing out at its oil-rich neighbours and a blockade of the Strait of Hormuz, through which a third of global seaborne crude and a fifth of liquefied natural gas (LNG) transit daily. Until Feb 28, both eventualities seemed remote, because Iran had too much to lose. It would risk pushing Gulf states towards America, its sworn enemy; angering China, the main buyer of its oil; and inviting strikes on its own petroleum infrastructure.
After America and Israel struck at the heart of the mullahs’ regime on Feb 28, killing its supreme leader, what remains of the regime is desperate. And both aspects of the nightmare scenario are unfolding at once.
