Renowned economist Paul Krugman is warning that Donald Trump’s Iran war could lead to a devastating global oil shock, with 20% of the world’s oil flowing through the Strait of Hormuz and no alternative routes. If the war prolongs, prices could surge, surpassing those of the 1970s oil shocks. Despite the US economy being less reliant on oil, Krugman says Trump’s actions have increased global energy costs by unilaterally imposing tariffs and starting a war that threatens to cut off oil supplies. The economist notes that presidents typically don’t control oil prices but start a war that can have significant effects.
Source: https://www.huffpost.com/entry/paul-krugman-oil-economy-trump-iran_n_69b12075e4b0896141513d8e