As the U.S. gears up for a potential ground war in Iran, $100-plus oil threatens ‘demand destruction’ — starting in Asia
As the U.S. prepares for a potential ground war in Iran to secure the Strait of Hormuz, oil prices remain above $100, raising concerns about "demand destruction" in various industries, particularly in Asia. The situation is critical as sustained high oil prices could lead to significant economic disruptions, impacting global markets and trade. This development underscores the geopolitical tensions in the region and their potential ripple effects on the global economy.
Good morning. In today’s Fortune: In Iran, the likely next phase is a ground war —troops, ships, jets, and helicopters are on their way, as the White House declined to rule out “boots on the ground.” The goal will be to reopen the Strait of Hormuz. We’ve got a map of the safe route through Hormuz (though those ships will pay a steep fee). Oil’s “demand destruction”: The price of oil eased but remains above $100. Stock traders did not celebrate, and U.S. futures were in negative territory this morning. Analysts are worried that sustained high oil prices threaten “demand destruction,” where certain industries simply cease to function—and there are signs of that in Asia already. Shock as the founder of Supermicro was arrested in a chip-smuggling probe. The French really are thinner than the rest of us. Fetch my clubs! Are you really a Fortune 500 CEO if you don’t have a country club membership? This story was originally featured on Fortune.com