Archives Energy carriers - New Eastern Outlook

Statements by Donald Trump that U.S. allies should “secure their own oil” in the area of the Strait of Hormuz reflect profound changes in international politics and energy security.

The Iran war is exposing the fragility of U.S. financial dominance as the Strait of Hormuz turns into a geopolitical pressure point. Disruptions to oil flows are accelerating challenges to the petrodollar system and dollar supremacy. What looks like strategic leverage may ultimately prove a costly Pyrrhic victory.

The sharp rise in oil and gas prices amid the conflict surrounding Iran calls into question the common explanations for the energy crisis and highlights how complex the real mechanisms governing global energy markets remain.