Hormuz Under Fire

Seven ships attacked in a week. Twelve mariners killed. When violence flares in the Strait of Hormuz, it is not a distant headline for supply chain and trade watchers, it is a direct threat to maritime traffic, energy security, and the price of everyday goods. We walk through what the latest Gulf shocks signal for global shipping, from rerouting risk to the real-world strain crews face when a chokepoint turns hostile.From there, we connect the dots to the economics: war risk insurance premiums, higher freight costs, and the difficult choice many companies are already making between riding volatile spot rates or locking in higher priced contracts just to regain certainty. We talk through why oil prices matter so much, how a jump in Brent crude quickly becomes higher transport costs, and why those costs eventually show up as inflation that households and businesses cannot escape.We also take a hard look at a historical parallel President Trump has publicly rejected: Herbert Hoover. Drawing on foreign correspondent Richard Engel’s conversation with University of Chicago professor Robert A. Pape, we outline a stage-based escalation model and the “fork in the road” between concession and deeper military escalation. The takeaway is blunt: a Hormuz disruption is a global economic event, and an energy shock can set the conditions for recession. If you value clear, practical analysis of geopolitics, global trade, and supply chain risk, subscribe, share the show, and leave a review.Link to Richard Engel's discussion with Professor Robert Pape Send us Fan MailSupport the show THANKS FOR LISTENING PLEASE SUPPORT THE SHOW You can support the podcast by following the link here. It makes a big difference and helps us make great content for you to listen to. Follow like and share the Chain Reaction Podcast with colleagues and friends on social media: Facebook, Twitter, LinkedIn.News about forthcoming programmes click hereSHAREPlease share the link with others so they can listen too https://chainreaction.buzzsprout.com/shareLET US KNOWIf you have any comments, suggestions or questions then just direct message on Linkedin or X (Twitter)REVIEW AND RATE If you like the show please rate and review it. Every vote helps.About Tony Hines and the Chain Reaction Podcast – All About Supply Chain AdvantageI have been researching and writing about supply chains for over 25 years. I wrote my first book on supply chain strategies in the early 2000s. The latest edition is published in 2024 available from Routledge, Amazon and all good book stores. Each week we have special episodes on particular topics relating to supply chains. We have a weekly news round up every Saturday at 12 noon. ...