Media Contact
Adam Allington
The United States and Israel’s conflict with Iran is spilling over into the Strait of Hormuz, one of the world’s most critical energy chokepoints, prompting a surge in oil prices.
Vidya Mani
Visiting Associate Professor
Vidya Mani is a visiting professor at Cornell University’s SC Johnson College of Business. Her research focuses on how supply chain imperatives drive decisions across key sectors, including automotive, energy, technology, pharmaceuticals and retail.
Mani says:
“The Strait of Hormuz is a lifeline for many essential commodities, including oil and gas, for Asia and the Middle East. In the short term, shippers in transit will need to prioritize cargo that can avoid this flashpoint and reroute through alternate waterways that can accommodate the additional load, resulting in up to a month of transit delays.
“If the conflicts continue for weeks, shortages and delays will be compounded by closures of other energy sources due to missile strikes across the region. In the US, we can expect spillover effects, from rising gas prices at the pump to inflationary pressures across basic commodities, as the world pivots to meet demand from a much smaller basket of supply.”
