Here’s what smart people are saying the failed US-Iran peace talks mean for markets – markets.businessinsider.com
Mohamed El-Erian, a top economist and former CEO of PIMCO, said the US move effectively layers a second blockade on top of Iran’s existing disruption of the Strait of Hormuz — amplifying risks across the global economy.
In an X post on Sunday, El-Erian outlined four key pressure points: Iran itself could lose critical revenue from oil exports and transit “tolls” it had charged select ships, he said.
Import-dependent countries like China and Pakistan may struggle to secure some oil flows they had previously maintained.
The US also faces rising risks, he added, as enforcing the blockade requires more military assets and increases the risk of direct conflict.
The hit is also global: businesses, governments, and households are likely to face another surge in energy, helium, and fertilizer prices, he said.
