By Robert Kiyosaki
There’s a narrow strip of water you’ve probably never thought about. At its narrowest point, it’s just 21 nautical miles wide—about the distance of a morning commute.
Yet through that 21-mile gap flows the lifeblood of our global economy:
20.9 million barrels of oil per day.
That’s the Strait of Hormuz. And the current conflict in Iran has exposed something most of us never fully understood: our world isn’t a collection of separate economies. It’s one economy, pretending to be many.
Who Actually Depends on This Waterway?
Let’s start with who sends their wealth through these waters:
Five countries. 94% of all oil moving through Hormuz.
Now here’s where it gets interesting—watch where it goes:
84% of all Hormuz oil flows to Asia.
Think about that for a moment. Four Asian economies—China, India, Japan, South Korea—are absorbing the hardest economic shock from a war they didn’t vote for, didn’t start, and aren’t fighting.
The Dominoes Begin to Fall
Japan’s Ticking Clock
Japan imports 90% of its energy. When oil crossed $100, the Nikkei dropped more than 5% in a single day. Japan maintains a 150-day oil reserve—but every day that passes without resolution brings them closer to the edge.
South Korea’s 2008 Flashback
The KOSPI suffered its biggest single-day crash since the 2008 financial crisis. Down 12% in one day. Circuit breakers triggered for the first time in seventeen years. All because of a war they had nothing to do with.
Europe’s Gas Crisis
Natural gas prices nearly doubled in 48 hours after Iran struck Qatar’s gas facilities. Why? Because 20% of global LNG flows from Qatar through Hormuz to Europe. Now shipping companies are rerouting vessels around the Cape of Good Hope—adding 15 to 20 extra days between Asia and Europe.
Every extra day = higher shipping costs = more expensive goods = inflation at your grocery store.
India’s Triple Vulnerability
India imports 2.5 million barrels per day through Hormuz. Its LNG plants run on Persian Gulf gas. And the fertilizer that grows food for hundreds of millions—much of it comes through that same 21-mile strait.
The Truth About Oil: It’s Also Your Dinner
Here’s what most people miss: oil isn’t just fuel. It’s food.
The Gulf produces massive quantities of nitrogen fertilizer—urea, ammonia, phosphates. Qatar, Saudi Arabia, UAE and Bahrain together produce 15 million metric tonnes of fertilizer every year. About one-third of ALL global fertilizer exports move through Hormuz.
According to Bloomberg, nitrogen fertilizer underpins roughly half of global food production. No fertilizer means:
A Cornell agricultural economist put it plainly: “Fertilizer prices were already high, and farmers were already pinched. This will hurt.”
The numbers back him up:
A farmer in Iowa captured the absurdity perfectly: “If nitrogen doesn’t come down, we might switch more acres to beans.” Not because of anything he did. Because a war started on the other side of the world.
Follow the Chain
Iran war → Hormuz disruption → fertilizer shipments blocked → farmers reduce applications → harvests fall → food prices rise → central banks raise rates → borrowing costs increase → economic growth slows → you pay more for everything.
That chain starts in a 21-mile strait. It ends in your shopping cart.
When Insurance Becomes a Weapon
Right now, 150 ships are stranded around Hormuz. Insurance companies—who have never cancelled Gulf coverage in modern history—are now withdrawing war risk coverage.
Hapag-Lloyd, one of the world’s largest shipping companies, introduced a $1,500 per container war surcharge. Overnight. CMA CGM followed with a $3,000 emergency surcharge for Gulf cargo.
Here’s the brutal logic: Ships can’t get insurance. Ships won’t sail without insurance. Banks won’t finance ships without insurance. The Strait isn’t formally closed. It doesn’t have to be. Insurance withdrawal accomplishes what a physical blockade would.
Dubai’s Jebel Ali—the largest port in the Middle East—suspended operations after an aerial interception caused a fire. Meanwhile, Emirates, Etihad, and Qatar Airways together handle 13% of global air freight capacity. All three are grounded or severely disrupted. Twenty thousand flights cancelled since February 28th. Over a million passengers stranded.
What My Rich Dad Taught Me
Years ago, my rich dad told me something I’ve never forgotten: “The global economy is not a collection of separate countries. It’s one economy pretending to be many.”
The proof is right in front of us.
A war involving three countries is:
One war. One strait. Twenty-one miles wide. And the whole world is paying for it.
The Real Lesson in Financial Literacy
Most people will blame the gas pump. They’ll blame their grocery bill. They’ll blame the airline. They won’t trace it back to the source.
But financial literacy isn’t just about stocks and real estate. It’s about understanding how the world ACTUALLY works. How money moves. How energy flows. How a war in a place you can barely find on a map can raise the price of bread on your table.
This is the world we live in. One economy. One system. And right now, that system is under serious stress.
The question isn’t whether you’re connected to that 21-mile strait. You are. The question is whether you’ll understand the connection before the next shock hits—or after.
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