Oil Prices Surge, Global Economy Burns

0:00Canada's stories, making news on March 21st. Oil prices are surging worldwide because of the ongoing war in the Middle East and the closure of the Strait of Hormuz to commercial traffic. Energy expert Bob McNally, President of Rabidant Energy Group and a former advisor to President George W. Bush, warns this has sparked a five alarm. Fire for the global economy. The conflict kicked off in February when the United States struck Iran, prompting Iran to hit oil and gas sites in the Gulf States. That came after Israel's attack on an Iranian gasfield and now key infrastructure is under threat, halting production and driving up costs. Stock markets tumbled on Friday amid the oil spike, rippling into agriculture, finance and equities. McNally says these shocks could turn into a big political risk for President Donald Trump as everyday prices climb and inflation bites. Trump's team is tapping strategic reserves and other releases, but McNally calls those efforts marginal at best. He insists the only fix is a military push to reopen the Strait, since no energy policy

1:04can handle this scale of disruption. Prices might crash later, once the Strait reopens, but not for good reasons. Slowed growth from higher costs will crush demand, leaving economies weaker. In the end.