Let’s Get This Strait: Amid Hormuz Closure, Oil Prices Are the Only Macro Force That Matters

Think of the global economy as a weather system. Most of the time, we track individual clouds, in the form of earnings reports, retail sales, or AI hype. But a Category 5 hurricane has formed in the Strait of Hormuz. And like a massive storm, it is drawing all the moisture (liquidity and attention) out of every other sector and into its own volatile eye. The effective closure of the Strait, which is a narrow 21-mile chokepoint responsible for 20% of the world’s petroleum and nearly one-third of all seabo ...