Impact of the War Involving Iran on Global Economy
Explore the causes of conflict involving Iran, the strategic importance of the Strait of Hormuz, and how global shipping disruptions affect everyday prices.
The War Involving Iran
Why it happened and why it affects us
CAUSES
Why Did It Start?
Nuclear tensions
Regional power struggle
Control of Strait of Hormuz
Fear → pre-emptive action
KEY IDEA
Geography = Power
20%
of global oil passes through Hormuz
Geography = Power
The cause of war = the source of global impact
WHAT IRAN DID
Controlling the Chokepoint
Military threat to shipping
Selective access (gatekeeping)
Increased risk and costs
Chain Reaction
One Disruption, Global Consequences
Shipping Disrupted
Oil Supply Reduced
Prices Increase Globally
Global Effects
Ripple Effects Across the World
Fuel Prices Rise
Production Costs Rise
Trade Slows
Inflation Increases
Impact on New Zealand
Closer to Home Than You Think
Higher petrol prices
More expensive goods
Cost of living increases
Supply delays
EVERYDAY EXAMPLES
Products You Use Every Day
Cosmetics
Toys
Plastics
Food Packaging
Most of these are made from or shipped using oil-derived products
CONCLUSION
From Hormuz to Home
War affects global systems.
Global systems affect us.
Local impact from global conflict.
What happens far away can land on your doorstep.
- iran-conflict
- geopolitics
- strait-of-hormuz
- global-economy
- oil-prices
- supply-chain
- inflation