Approximately 20% of the worlds oil passes through the Strait of Hormuz. In recent days Iran issued repetitions of threats to close the Strait of Hormuz by military means. There have been a series of such threats over the past year. This conflict may increase the price of oil significanlty. Experts have predicted that oil prices will rise to between 300-500 dollars per barrel if Iran closes the channel. Oil prices are currently about 100 dollars per barrel. The economic threat to the world commerce is very great and very serious.
This crisis highlights the need for business to move away from oil and electricity, as renewable energy sources are less effected by global issues. For example, wind is a free resource and biomass is produced locally.
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