Iran has now officially sealed off the Strait of Hormuz, the vital artery through which a hefty chunk of global oil and LNG shipments flow. While this could boost demand for Russian oil and gas, it may mean a new crisis for the economy of nations like Hungary.
New crisis on the horizon
According to a Pénzcentrum report, the closure could rocket oil prices to $100–120 per barrel, piling ferocious inflationary pressure on Hungary and parts of the European Union. Central and Eastern Europe, including Hungary, remains ravenous for energy imports. With the exception of Hungary and Slovakia, every country in the region has ditched Russian supplies—but alternative sources may dry up if the Iranian conflict drags on. Even President Trump offers little cheer: US military planners initially banked on 3–4 weeks, yet a protracted war now looks all too plausible.
America’s aim is to cripple Iran’s capabilities, keeping the strait blockaded in the process. But that’s no quick fix; few shipping firms would willingly send crews through its narrowest pinch—barely 3km wide—in such peril.
Hungary can be among the biggest losers
Experts cited by Türkiye’s Anadolu Agency warn of seismic global fallout. A fifth of the world’s LNG cargoes pass through here, feeding powerhouses like China, Japan, India, and South Korea, while Europe remains perilously exposed.
The ripple effects stretch beyond oil and gas to all manner of freight. In this war zone, carriers may shun the Middle East entirely, bypassing the Suez Canal and detouring round the Cape of Good Hope, sending business costs soaring.
The upshot? Chronic supply jitters, elongated delivery times, and sky-high fuel prices that will hammer haulage rates across the board.
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Featured image: depositphotos.com
Calm down, fam. The mad mullahs will be gone in no time. They are in way over their heads and this time we are not stopping nor getting cajoled into a meaningless ceasefire, like last June.
I mean, their Al-Quds terrorist brigades’ commander is an Israeli spy! HAHAHAHAHAHAHA!!! Am Yisrael 7ai!!!
Iran started this war at a point not far from economic collapse. It’s days are numbered and it cannot sustain any kind of war for long. It can stop Gulf states from exporting oil but it suffers from the same problem. No oil revenue and no revenue from weapons exports to Russia. Russia in turn has lost a large supply of drones for its’ attacks on Ukraine at a point where its’ snails pace offensive has completely stalled and it starts to encounter reversals.
No doubt that the Hungarian golden age is here to stay (sarcastic mode off) now let see who is the one to be blamed. Sure not trump and his silly attack to Iran. The america first and no wars is a thing from the 1 mandate. Its amazing how a single man can go just crazy in a little time. Europe should stay together for defense and kick out the trojan horse that is Hungary
Since Orbán brought Hungary and Fico Slovakia to this point, they should face the consequences alone and not demand solidarity from other EU members again. Solidarity is not a one-way street, even if Orbán and Fico think it is. Forgetting doesn’t happen so quickly that others can’t remember how selfishly Orbán and Fico behaved in the past.
If Orbán and Fico have a problem with this, they should consult their guardian angel, because Trump is ultimately responsible for the chaos.
Germany, for example, buys almost all of its oil from Great Britain, Norway, Kazakhstan, and the USA. The deliveries are contractually agreed upon; only the price cannot be controlled. The situation is not much different with the other EU members. As far as I know, only about 0.5% of the oil coming to Europe originates from war zones, but please correct me if I’m wrong.