Statement made on digital platform by Robert Kiyosaki, Author, Entrepreneur, Investor
KRC Times Tell Tale Teaser Team
IRAN War Teaches Us One BIG Thing – The World Is War More Interconnected Than We Think It Is!Let’s look at it…
- First. Understand what the Strait of Hormuz actually is.
It’s a strip of water 21 nautical miles wide at its narrowest point.
That’s it. 21 miles.And through that 21-mile gap flows:
— 20% of all the world’s oil. Every single day.
— 20% of the world’s LNG (liquefied natural gas).
— 30% of the world’s fertilizer exports.
— 30% of Europe’s jet fuel supply.
20.9 million barrels per day.
That’s the number.
Shut that 21-mile gap and you don’t just hurt three countries.
You hurt the entire planet.
Now let me show you who is dependent on whom.
Who ships oil through Hormuz?
- Saudi Arabia sends 37% of its exports through that strait.
- Iraq sends 23%.
- UAE sends 13%.
- Iran sends 11%.
- Kuwait sends 10%.
Five countries. 94% of all the oil moving through Hormuz.
Who RECEIVES that oil?
- China: 38% of all Hormuz flows go to China.
- India: 15%.
- South Korea: 12%.
- Japan: 11%.
84% of all Hormuz oil goes to Asia.
These four Asian economies — China, India, Japan, South Korea — are not in this war.
They didn’t vote for it.
They didn’t start it.
And they are taking the hardest economic hit.
The story goes way beyond this though:
- Japan.
Imports 90% of its energy.
The Nikkei dropped more than 5% in a single day when oil crossed $100.
Japan has a 150-day oil reserve.
The clock is ticking.
- South Korea.
Imports 70% of its oil from the Gulf corridor.
KOSPI — their stock market — suffered its biggest single-day crash since the 2008 financial crisis. Dropped 12% in one day. Circuit breakers were triggered.
First time since 2008.
Because of a war they had nothing to do with.
- Europe.
Natural gas prices nearly doubled in 48 hours after Iran struck Qatar’s gas facilities.
Why? Because 20% of global LNG supply flows from Qatar through Hormuz to Europe.
Shipping companies are now routing vessels around the Cape of Good Hope — adding 15 to 20 extra days of transit between Asia and Europe.
Every extra day = higher shipping cost.
Higher shipping cost = more expensive goods.
More expensive goods = inflation at your grocery store.
- India.
Imports 2.5 million barrels per day through Hormuz.
India’s LNG plants run on Persian Gulf gas.
And India grows food — food the whole world eats — using fertilizer that comes through Hormuz.
- Oil – It’s not just fuel, it’s so much more than that.
Oil is also food.
Here’s how:
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.
Around one-third of ALL global fertilizer exports ship through Hormuz.
Nitrogen fertilizer, according to Bloomberg, underpins about half of global food production.
Without fertilizer — wheat yields fall.
Corn yields fall.
Rice yields fall.
A Cornell agricultural economist said: “Fertilizer prices were already high, and farmers were already pinched. This will hurt.”
- Urea prices jumped from $516 per metric ton to $683 in five days.
- Wheat hit a near two-year high.
- Palm oil surged 10%.
- Soybeans up. Corn up.
A farmer in Iowa said: “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.
Here’s the full chain — pay attention:
Iran war → Hormuz disruption → fertilizer shipments blocked → farmers reduce crop applications → harvests fall → food prices rise → central banks raise rates → borrowing costs up → economic growth slows → you pay more for everything.
That chain starts in a 21-mile strait.
It ends in your shopping cart.
- What about shipping?
150 ships stranded around Hormuz right now.
Insurance companies — who have never cancelled Gulf coverage in modern history — are now cancelling war risk coverage.
Hapag-Lloyd, one of the world’s largest shipping companies, introduced a $1,500 per container war surcharge. Overnight.
CMA CGM: $3,000 emergency surcharge for Gulf cargo.
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 is doing the same thing a physical blockade would do.
Dubai’s Jebel Ali — the largest port in the Middle East — suspended operations after an aerial interception caused a fire.
The world’s air cargo network? Emirates, Etihad, and Qatar Airways together make up 13% of global air freight capacity.
All three are grounded or severely disrupted.
20,000 flights cancelled since February 28th.
Over a million passengers stranded..
Here’s the lesson most people will miss.
My rich dad told me: “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 between three countries is:
— Crashing stock markets in Japan and South Korea.
— Doubling natural gas prices in Germany.
— Raising corn costs for farmers in Iowa.
— Blocking fertilizer to Brazil — the world’s largest soybean exporter.
— Spiking inflation in the Philippines, India, and sub-Saharan Africa.
— Stranding 150 ships in the world’s most important waterway.
— Cancelling 20,000 flights.
— Adding 20 extra days to Asia-Europe shipping routes.
One war. One strait. 21 miles wide.
And the whole world is paying for it.
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.
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.
~ Robert Kiyosaki, Author, Entrepreneur, Investor
