Fake Off: Strait of Hormuz Blockade Threatens Global Economy?

For over a month, tensions raised by Iran have made it difficult for many oil tankers and cargo ships to pass through the Strait of Hormuz, putting the economies of many countries at risk, according to several social media reports.

Some internet users are sounding the alarm, suggesting that if the situation does not improve by May, the global economy may face a historic crisis. In recent days, they have started listing possible impacts of the Strait of Hormuz blockade outside of Europe, particularly in Asian and Oceanic countries.

South Korea could shift to a “war economy,” and without the strait reopening in the coming months, Australians may have to resort to rationing to save agricultural harvests. Countries like Sri Lanka, the Philippines, Thailand, and India have reportedly started implementing “emergency measures” such as setting a maximum fuel purchase quota and intermittently cutting air conditioning to reduce energy consumption.

“Energy crisis,” “global recession” – does the blockade of this one strait truly have the power to cripple the economies of so many countries?

The Plastic Predicament in South Korea

In South Korea, talk of a “war economy” is not currently on the table, but real issues surrounding the production of certain products are starting to emerge. This includes problems with garbage bags and, more broadly, the entire plastic industry. The Korean Plastics Industry Federation sounded the alarm on March 25, warning about issues affecting the chemical sector…

Read more on 20 Minutes

Related: War in Iran: Oil pipelines, an insufficient alternative to the Strait of Hormuz closure for oil exports. War in Iran: Thirty countries unite on Thursday to work on securing the Strait of Hormuz.