US President Donald Trump’s plan to blockade the Strait of Hormuz threatens to
deepen an economic crisis for Asia’s energy-dependent economies, including US
allies and China. Analysts, including Jennifer Welch, warned the move raises
downside risks, with higher oil prices, weaker growth and rising inflation.
Brent crude surged up to 8.6% above $103, while European gas jumped nearly 18%.
The blockade, targeting vessels linked to Iranian ports, follows failed US-Iran
talks. Asian economies reliant on the strait are seeking alternative supplies,
while China may pressure Washington, potentially leveraging its dominance in
critical minerals.
