Oil, power, economy and stability: Strait of Hormuz and did global community neglect vitality

"NEVER put all your geopolitical eggs in one basket" - Prof. Kishore Mahbubani, former President of UN Security Council and storied Singaporean career diplomat.

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In the beginning of the last Century, US Steel magnate and one of the three wealthiest persons at that period stated, “Put all your eggs in one basket and then watch the basket.” This famed quote could be, even, evolved or altered given the current geopolitical and geo-economic unpredictability and seminal nature of oil and gas to most of the major economies as quote “Put all your geopolitical eggs in one basket and watch that basket meticulously and with extreme care.” unquote.

Just about a month and half ago, on 20 February 2026, when the US Supreme Court submitted a verdict against the US Tariffs and were reduced to 10%, the global community was much relieved. This ‘elation’ did last barely a week as the Iran - Israel - US conflict began, thus surprising and eclipsing most of the nations and leaders of the world. Coincidently, the ongoing Ukraine-Russia conflict marked the completion of the fourth year just four days before the Iran War on 24 February 2026. Most, including some of the noted strategists, believed the war would conclude fairly rapidly similar to the 12-day “Operation Midnight Hammer” in June 2025.

The world took little notice or paid much heed during the first week as the global economy and oil and gas markets and demands were not disrupted or upended. Without any surprise, Iran implemented a blockade of the seminal Strait of Hormuz, which is, probably, the most critical choke-point for global oil shipments, impeding and fracturing the flow of oil and gas consisting 20% of global demand. It is stated that it was not a shock to any perceptive or perspicacious geopolitical analyst as Iran, since the beginning of 1980s, at the time of infamous Iran-Iraq War, consistently threatened to block or strangle the Strait of Hormuz. Until the Strait of Hormuz was ruptured, the global economy did not feel the Iran-Israel-US conflict much.