It is difficult to believe the pace at which global events are now moving. Apocalyptic threats are being thrown around recklessly and severe damage is being done to the global economic system every single day. A lot of people still seem to think that economic conditions will snap back to normal once the war ends, and that is because they don’t understand the level of destruction that has already taken place. Even if the war ends tomorrow and commercial traffic starts flowing freely through the Strait of Hormuz once again, the world won’t be getting nearly as much energy from the Middle East because dozens of oil and natural gas facilities have either been damaged or destroyed. That means that widespread rationing and global energy shortages are baked in no matter what happens next.
According to the executive director of the IEA, 75 energy sites in the Persian Gulf region have been attacked, and approximately a third of those sites have experienced severe damage…
It is going to take years to rebuild the damage that has already been done by this war.
So what will things look like if this war stretches on for many more months?
Tankers that traveled through the Strait of Hormuz before the war began have still been arriving at their destinations.
But this month that is going to stop happening, and Birol is warning that we are entering a “black April”…
Hellbound and Down 