The road to de-escalation with Iran

[WASHINGTON, BERKELEY] The closure of the Strait of Hormuz is having devastating consequences worldwide.

The price of oil is up sharply, liquefied natural gas has become much more expensive in key markets, the cost of fertiliser is likely to remain high throughout the planting season, and liquefied petroleum gas is hard to find in some regions.

The world’s poor and middle-class households are being hit the hardest. In countries such as Sri Lanka, Bangladesh, Pakistan, India, Thailand and the Philippines, higher fuel prices immediately squeeze budgets for low-income people, who also face the prospect of higher food prices.