Singapore Prime Minister Lawrence Wong has made a big claim regarding the situation on the Strait of Hormuz. According to him, the impact of the Strait of Hormuz, which has been closed for the last two months, will be far-reaching. Something like what happened in the 1970s. He recently clarified his concerns and situation.

Addressing the public, Wong said, ‘The impact of the Hormuz closure is not limited to the increase in prices, but now huge pressure is also visible on the supply.’ He claimed that many countries in Asia, which depend on energy and other essential resources from Gulf countries, are being affected the most.

Hormuz crisis will not be limited to energy only

Wong said, ‘There have already been reports of fuel shortage in some countries. Airlines have cut flights and problems of delays have started in many factories. Experts say that this crisis will not be limited to energy only, in the coming time the supply of fertilizers, food and other essential commodities will also be affected and shortage of many things can be seen.

The Singapore PM expressed apprehension that the situation would not return to normal very soon. He said that even if this Strait of Hormuz is reopened in the future, the situation will not return to normal immediately. The reason is that ports and energy infrastructure have been damaged during the closure and it will take time to remove mines from sea routes.

Additionally, insurance companies will need reassurance that sea routes are safe, shipping companies will need to regain confidence in taking the risk, and this process does not happen overnight. Experts estimate that it may take at least several months for the situation to become normal. This means that this crisis is not going to end soon, rather the pressure may increase further in the coming months.

Why did Wong mention 1970?

Wong also mentioned the stagflation of the 1970s. He said, ‘The older generation will remember the oil crisis of the 1970s, when the world experienced stagflation, i.e. a situation in which inflation is high and unemployment also increases. This is considered one of the most difficult situations of the economy.

Wong warned, ‘Now such risks are increasing again. Even the International Energy Agency (IEA) has warned that the current crisis could be worse than that of the 1970s. For this reason, there is a need to take the situation seriously and make preparations, so that we can be mentally and financially prepared for the challenges of the times to come.

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