The Strait of Hormuz Is Becoming a Tax on the Global Economy

The economic consequences of disruption in the Strait of Hormuz extend far beyond crude oil. Higher shipping costs, insurance premiums, aviation fuel, natural gas, fertiliser and petrochemical prices are spreading through global supply chains. The result increasingly resembles a geopolitical consumption tax: households and businesses pay more for the same goods simply because the world has become more expensive to move through.

ET&A Research · 2 September 2026

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The Strait of Hormuz Is Becoming a Tax on the Global Economy

When geopolitical tensions rise around the Strait of Hormuz, financial markets instinctively look at the oil price.

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