By Admin 
- Iran closed the Strait of Hormuz and increased energy prices.
- Oil and gas prices will increase further due to American blockade.
- Iran believes that time is on its side.
- The crisis could reduce growth rates in developing Asia by 1%.
Global Energy Crisis: Trump calls himself a master of the “Art of the Deal”. However, patient conversation is not his style. After a weekend of failed peace talks with Iran, the US has again taken the lead and announced a blockade. This new strategy is going to backfire.
Iran has effectively closed the Strait of Hormuz, causing global energy prices to skyrocket. But due to the American blockade, the prices of oil and gas are going up even higher.
Increasing tension in the Middle East
The threat of Iran attacking energy infrastructure in the Gulf has also increased. On this subject, the Iranians believe that time is on their side in this conflict and they are probably right. The longer the Strait of Hormuz remains closed, the more the economic and political pressure on America and its allies will increase. As a result, whenever peace talks resume, Iran’s negotiating position will be stronger.
What will be the effect?
The increase in prices at petrol pumps is just the beginning. Jet fuel shortages will impact air travel, hurting tourism ahead of Europe’s crucial summer tourist season. The shortage of helium, which is largely produced in Qatar, could halt semiconductor production.
Lack of fertilizer will affect food production, which will further increase inflation. The Asian Development Bank has recently estimated that this energy crisis could cause the growth rate in developing Asia to fall by more than 1 percent this year.
Global energy crisis deepens
Fatih Birol has described the impact of about 20 percent of the world’s energy supply as the biggest global energy security crisis in history. The head of the International Energy Agency has warned that the current situation could be more serious than the oil crisis of the 1970s. Which had created problems like inflation, recession and fuel shortage in many countries at that time.
Trump’s planning
It is believed that Trump’s plan is to create so much economic pressure on Iran through the blockade that it will soon be forced to retreat. However, the current situation shows that this is not so easy. Iran is fighting for its existence.
Iran also currently has some economic support. It has recently earned good income by selling oil at high prices and is also earning some money from exporting gas through pipeline.
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