Iran War Closes Hormuz Strait, Drives Up Prices

Geography explains the wider impact. The Strait of Hormuz, only 21 miles wide, links the Persian Gulf to the Arabian Sea, and most oil bound for Asia and Europe must pass through it. When Washington blocked Iranian ports, Tehran's control of the strait became a global crisis. Iran blames the United States for economic warfare, citing sanctions, currency pressure, and subsidy cuts. The International Monetary Fund (IMF) reports that food inflation has reached 140% to 200%. President Masoud Pezeshkian has set up a committee to fight price gouging, but analysts say Iran's hyperinflation is now structural.

The humanitarian cost is highest in Afghanistan. The United Nations World Food Programme (WFP) said its nutritional supplements for malnourished mothers and children ran out by mid-April. Transport costs have tripled, container rentals have jumped from about $3,000 to over $7,000, and one route from China via Iran climbed from $1,500 to over $15,000. The Trump administration is pressing European allies to help. Czech Foreign Minister Petr Macinka said Prague will contribute surveillance, despite having no navy. President Trump has called the North Atlantic Treaty Organization (NATO) a 'paper tiger' and threatened to withdraw.