The Hormuz Crisis Has Forever Changed the Economics of Energy Security

Complex systems reveal their true characteristics only under stress. Disturbance exposes assumptions that routine operation conceals and becomes the catalyst for adaptation. Capital reassesses risk, governments reconsider policy, and markets establish a new equilibrium. The resulting system may ultimately prove stronger than the one that preceded it, but it is never identical. Recent developments surrounding the Strait of Hormuz provide one such moment. Whether they ultimately prove to be a lasting geopolitical inflection point remains uncertain.…