Andrew Critchlow, head of news at Dow Jones, said that the collapse of the truce between the United States and Iran just weeks after it was reached has brought geopolitical risks back to the forefront, warning of major repercussions on the global economy and supply chains, especially with the decline in navigation through the Strait of Hormuz.

In an interview with Al Arabiya Business, he explained that the continued disruption of navigation in the strait threatens to raise commodity and energy prices, noting that the United States faces an additional challenge of low oil reserves, which could make it difficult to deal with any new shock in oil markets or rebuild strategic stockpiles if the crisis continues.

He added that Asian economies will be among the most affected, due to their heavy reliance on energy imports through the Strait of Hormuz, and that rising European demand for liquefied natural gas is increasing pressures on global energy markets.

Regarding US President Donald Trump's proposal to impose a 20% transit fee on goods or oil passing through the strait, he said that such a step, if implemented, would significantly raise trade and energy costs, and would affect the economies of both oil-producing and importing countries, as well as increase inflationary pressures globally.

He pointed out that the rise in shipping and energy costs will extend to many sectors, including petrochemicals and fertilizers, expecting Iran to respond by imposing additional fees on passing ships, which could further complicate global trade.

Regarding his oil price forecasts, he explained that Brent crude has already exceeded $80 per barrel, expecting that if tensions continue and navigation in the Strait of Hormuz is disrupted for a period of three to four weeks, oil prices are likely to continue rising to much higher levels than current ones.

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