Strait of Hormuz Crisis Sparks Global Energy Shortage
The global economy is feeling the effects of the crisis in the Strait of Hormuz. The Strait, which connects the Persian Gulf to the Middle East, has been closed to most shipping since February 2026 due to a war between Iran and the US/Israel.
This has led to a significant shortage of energy and fertilizer supplies, causing prices to skyrocket. Brent crude oil prices have jumped over 50% in just a few months, with a daily production shortfall estimated at 14.5 million barrels.
The crisis is having a disproportionate impact on the two largest economies in the Maghreb: Morocco and Algeria. Morocco's phosphate fertilizer production relies heavily on imports from the Gulf region, which have been severely disrupted.
Algeria, on the other hand, could benefit from increased hydrocarbon revenues due to rising oil prices but faces renewed pressure to postpone its transition to 'green' energy.