The Global Costs of Disruption in the Strait of Hormuz

Mehran Haghirian

No 2616, Policy briefs on Commodities & Energy from Policy Center for the New South

Abstract: The war on Iran and in the Gulf has made it impossible to treat the Strait of Hormuz as a regional issue. The disruption around the Strait has moved through the world economy in concrete ways, from higher fuel bills and pressure on food and fertilizer supply chains to rising costs for households and companies far from the conflict. This policy brief examines how Hormuz became one of the main channels through which the costs of the war spread beyond the Gulf. It argues that the crisis exposed the extent to which global markets, food systems, industrial production, mobility, and development finance are tied to the Gulf’s stability. The real issue now is how the Gulf states and their partners can build greater resilience once the war fully ends.

Date: 2026-06
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