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The Strait of Hormuz, Towards a Long-Lasting Solution

Author

Listed:
  • Massoud Karshenas
  • Hashem Pesaran
  • Ron Smith
  • M. Hashem Pesaran

Abstract

The disruption of shipping through the Strait of Hormuz has once again exposed a structural weakness at the heart of the global energy system. Roughly a fifth of the world's seaborne oil passes through this narrow waterway. Any interruption carries immediate and far-reaching economic consequences. The question is not simply how to restore access, but how to ensure that such disruptions do not recur. This paper provides an economic model towards a durable resolution of security of shipping through Persian Gulf.

Suggested Citation

  • Massoud Karshenas & Hashem Pesaran & Ron Smith & M. Hashem Pesaran, 2026. "The Strait of Hormuz, Towards a Long-Lasting Solution," CESifo Working Paper Series 12633, CESifo.
    • Handle: RePEc:ces:ceswps:_12633
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    File URL: https://www.ifo.de/DocDL/cesifo1_wp12633.pdf
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    More about this item

    Keywords

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    JEL classification:

    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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