00:00At Euronews we usually report big politics, but this time your reporter wants to ask a different question.
00:07How the Middle East conflict will affect your wallet?
00:10Recently, following US and Israeli strikes, Iran has moved to block the Strait of Hormuz.
00:17And what you need to know is that this is the ultimate geopolitical chockpoint,
00:22connecting the Persian Gulf to the open ocean.
00:25Let's investigate the economic impact.
00:27Let's start with an easy question.
00:30Do you have a car?
00:31Because 20 million barrels of oil squeeze through this narrow strait every single day.
00:37And as drone attacks halt major shipping, global oil prices have surged.
00:42This means immediate price hikes at the pump and rising supermarket inflation,
00:48since shipping everyday goods will simply cost more.
00:51And what about your house?
00:53Because this trade is not just for oil.
00:56A massive portion of global LNG relies on this route.
01:01And following the attacks, Qatar halted its LNG facilities, sending European gas prices up to the moon.
01:08And since Europe needs this gas for heating and electricity, expect higher household bills.
01:16Finally, the timing could not be worse for Europe, as the continent now relies on shipped LNG.
01:21And as European reserves are dangerously low right now, a sustained blockade leaves the EU exposed to high-price spikes.
01:30And that's not great.
01:33And climate activists argue this crisis exposes the true weaknesses of a world chained to fossil fuels.
01:40They are pushing for a faster shift to homegrown renewables, to escape the geopolitical shocks exactly like this one.
01:47However, until that energy transition happens, it seems this tiny maritime chokepoint will dictate the cost of living for you
01:55and for me.
01:56THE PLATIVE
01:59You
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