Source: Fortune
Summary
The Iran conflict has highlighted the critical role of the Strait of Hormuz in global energy markets. Despite President Trump’s pledge to offer insurance backstops and naval escorts, oil prices continue to rise, suggesting energy traders are worried about the risk of attack. The reaction of global markets underscores how the world of trade has fundamentally changed, with many leaders shifting towards mercantilism, a state-driven protectionist economic system.
Our Reading
The strategy enters a familiar phase.
Higher minimum wages may spur robot adoption. The rise of mercantilism amid the Iran war has CEOs like Angeliki Frangou, CEO of Navios Maritime Partners, adapting to a new reality. Frangou notes that shipping rates for transporting crude from the region have risen 4X since last week. Her message to CEOs: “We are watching history in a lot of ways. The WTO world we built our companies in basically doesn’t exist today.”
The numbers tell a story of a world shifting towards protectionism, with CEOs like Frangou having to navigate through COVID shutdowns, tariff wars, actual wars, geopolitical tension, climate change, and piracy on the high seas.
Author: Evan Null
