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The Strait of Hormuz shows how everything is now about leverage

By Renaud Foucart, Senior Lecturer in Economics, Lancaster University Management School, Lancaster University

Iran’s military might was never going to be a match for the US and Israel. So instead it turned to the highly effective weapon it has at its disposal – geography.

Blocking off the Strait of Hormuz has shaken the global economy. It has doubled the price of a barrel of crude oil, which has a knock-on effect on the price the rest of the world…

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