How Bad Could the Iran Oil Crisis Get?

The global energy crisis sparked by conflict in the Middle East is explored, focusing on the potential for a severe supply shock and its economic consequences. Jason Bordoff, Director of the Center on Global Energy Policy at Columbia University, explains how the closure of the Strait of Hormuz, a critical maritime choke point, could disrupt oil and natural gas supplies, dwarfing the 1973 Arab oil embargo in scale. The discussion examines the asymmetric nature of the conflict, with Iran's ability to impact global energy markets despite its weaker military. Bordoff and Klein consider the implications for the U.S., including potential recessionary risks and the weaponization of energy, as well as the longer-term strategies of China and Iran in a world of collapsing geopolitical order.