Saudi oil is burning, Hormuz is choked, the Red Sea is closed, and the United States has itself to blame.Steve Hanke, a Johns Hopkins professor and one of the most followed economists on X, pulls no punches:"Trump has actually himself closed 2 of the 8 important straits in the world. The Strait of Hormuz was open before we waged war. That's a war of choice on them."Prof. Hanke believes we will end up with the Iranians permanently managing the strait, and draws a historical comparison to Turkey managing the Bosphorus and Dardanelles since 1936.He says the inflation genie is out of the bottle, the Fed cannot put it back, and diesel, jet fuel, and gasoline are all feeding a structural price problem that predates the war and is now being made dramatically worse.On tariffs, sanctions, and interventionism: "This is a good way to make lots of enemies and put sand in the gears of commerce," and he sees no coherent plan from Trump, just ad hoc decisions made in real time.Then there's the wheat story nobody is covering, the grain corridor out of Odessa being shut down, Russian gloves coming off, European sanctions backfiring on European manufacturing, all of it pointing to a food crisis that oil headlines are crowding out...We've only begun to see the consequences of this war.
View: https://x.com/MarioNawfal/status/2081492653192126897