The Strait of Hormuz
Why it Needs to be Reopened

The issue is clear, and the concern is plain:
The Strait of Hormuz must open again.
Nearly twenty percent of the world’s oil supply
Moves through that water passing by.
If tankers stop or ships withdraw,
The price of oil will climb once more.
Energy costs will rise worldwide,
And households everywhere will feel the tide.
Even if much of Iran’s navy is gone,
Other threats to ships go on.
Sea mines could number up to six thousand strong,
And clearing them all could take too long.
Fast boats may rush at tankers, near,
Drones may strike, and crews may fear.
Insurance costs have sharply grown—
From a quarter to three percent alone.
A cargo worth a hundred million dollars or more
Now faces risks it did not face before.
The United States may subsidize the fee,
So ships will sail and trade stay free.
Yet money does not calm a crew
Who knows that drones could break through?
Would low insurance make you go?
Where missiles or mines might strike below?
Experts warn of the escort plan
Costs as much as the oil they scan.
Naval ships and aircraft overhead
Make passage slow and costs widespread.
Several dozen ships once crossed each day;
Now, only a handful make their way.
That is less than what markets need—
The world still runs on Gulf oil feed.
So, the issue stands for all to see:
The strait must reopen safely.
Not for politics, not for pride—
But to meet our national needs worldwide.
About the Creator
Anthony Chan
Chan Economics LLC, Public Speaker
Chief Global Economist & Public Speaker JPM Chase ('94-'19).
Senior Economist Barclays ('91-'94)
Economist, NY Federal Reserve ('89-'91)
Econ. Prof. (Univ. of Dayton, '86-'89)
Ph.D. Economics



Comments (1)
Right now, the best solution to this is America simply running away, and handing the problem back to Israel and the Gulf states... Unless the Tehran regime topples (doesn't look likely, and now they REALLY will feel free to shoot protesters), Iran can just pound the Gulf oil infrastrucure with cheap shahed drones forever, costing the global economies trillions.. Do you know any expats in Dubai? Its must be a mass exodus, and 90% will never go back after watching luxury apartments and the airport get hit.