The factoid thrown around is that roughly 20% of the world’s oil supply travels through the Strait of Hormuz. Since it closed, my local gas prices in one area of the US midwest have gone from $2.60 to now $4.10 presumably as reserves have been used up.
I could understand a 20~30% increase in price to correlate with the reduction in supply, but what are the economic factors that lead to what feels like such a disproportionate increase?
Counter to intuition this is actually a good thing. Not that they do good things… But it causes monopolies like the OPEC to fracture so some countries can pump more oil now due to increasing prices.
Also I suggest you read “the prince” by Machiavelli.