21:20 24 July 2026
Paul Krugman: real price of oil around $140, countries have exhausted reserves
Nobel Prize-winning economist Paul Krugman warns that a renewed war with Iran could impose far greater costs on the global economy because energy reserves have largely been depleted. He argues that another closure of the Strait of Hormuz would be especially damaging, while Houthi attacks in the Red Sea threaten alternative shipping routes. Limited global refining capacity is also pushing fuel prices far above headline crude oil quotations. According to Krugman, the refining margin has risen from about $25 to $65 per barrel, meaning consumers face costs equivalent to oil priced at roughly $140 per barrel.
Combined with inflationary pressure from new U.S. tariffs, this could sharply increase living and business costs, particularly if the conflict continues to escalate.
(wnp.pl)
