Aletho News

Strait Of Hormuz closure brings Empire to brink

By Kit Klarenberg | Al Mayadeen | March 24, 2026

Since the criminal Zionist-American war on Iran erupted, the Strait of Hormuz has remained stubbornly closed. Despite Donald Trump’s dire threats, Tehran has brought maritime traffic to a total standstill. The Empire has futilely scrambled to assemble an international coalition to reopen the economically vital waterway ever since, only to be rebuffed. NATO allies have been slammed for making a “foolish mistake”, by refusing to help militarily secure the Strait. In truth, there is no hope it can be forcibly reopened in the foreseeable future.

As Bloomberg reports, while discussions are ongoing among G7 members over potential methods of restarting trade in the Strait, the general consensus among US allies is this can’t happen until hostilities ease, or outright end. Bank of America’s head of research has ominously warned oil prices could rise above $200 per barrel “if disruptions persist for multiple months.” He forecast that if the Strait isn’t reopened within days, its closure could precipitate a global recession.

Tehran imposing a blockade on the Strait was absolutely inevitable, and widely predicted, in the event of war. Even if the conflict ends soon, lasting damage has already been inflicted in many economic spheres, and the effects will be increasingly felt by average citizens in the form of higher prices for essential goods. Global shipping has been thrown into disarray, with major logistics firms cancelling routes in West Asia, producing higher transport and insurance rates, and delays. Again, increased costs will be passed onto consumers.

In all, approximately 11% of global maritime trade passes through the Strait annually, accounting for 20% of the world’s total oil supply. Iran’s blockade, coupled with Resistance strikes on refineries throughout the region, will cause lasting chaos in energy markets and impact availability for years to come. Yet, despite a preponderant mainstream focus on the implications of the Strait’s closure for oil and gas, many vital commodities underpinning the operation of major industries worldwide also regularly transit through in substantial quantities.

Their availability and cost is in some cases likewise wildly fluctuating, impacting agriculture, construction, manufacturing, and in turn many fields of everyday life for countless people. And this is only the beginning. Approximately one third of the world’s seaborne fertilizer supply passes through the Strait every year. Before the war, Gulf states ranked highly among international fertilizer suppliers. Up to 43% of global trade in urea – a fundamental component of food production – flowed from the region.

The price of urea can affect production costs by as much as 90%. Now spring is upon us, and planting season has commenced across the West, urea has abruptly become a scarce commodity. Many farmers are already operating without profit, and grave concerns about how long this can be sustained widely proliferate. The prospect of Western sanctions on Russia – a major producer of fertilizer – being lifted to ameliorate the market bedlam grows ever-more likely as time goes on.

Sulfur is a core element of fertilizer production, and pre-war, the Strait provided up to 45% of the world’s supply. As an essay by elite US military academy West Point cautioned on March 13th, the price of sulfur has to date surged 25%, “squeezing one of the most consequential inputs to modern industrial power.” Sulfuric acid is not only vital for basic economic functions, “but also modern warfighting.” In a bitter irony, the Strait of Hormuz’s blockade will cripple Washington’s defence industry – and ability to maintain its conflict with Iran:

“[Sulfur] is needed for everything from the copper in the American electrical grid to the semiconductors in precision-guided munitions… For military planners and strategists, the looming loss of sulfur is a pre-logistical crisis…Chemicals like sulfuric acid sit upstream of copper extraction, battery-material processing, and semiconductor fabrication, meaning they can determine whether the US military can maintain industrial base production of electrical and digital systems needed to sustain the fight as munitions are expended and combat losses mount.”

Copper provides the “clearest example” of why the Strait’s blockade is “a warfighting problem” of historic proportions for the Empire. The widely-used metal is “embedded in the transformers, motors, and communications hardware” enabling US bases “to operate and defense factories to function.” This quickly translates into “a readiness and resilience problem” for the military. It will take over 30,000 kilograms of copper to replace US radar systems destroyed by the Resistance in Bahrain and Qatar alone.

March 24, 2026 - Posted by aletho | Economics, Wars for Israel | Iran, Israel, Middle East, United States, Zionism