After several wars and decades of sanctions Iran is well versed in how to sustain under economic pressure. Its people and government know of the larger picture. Price fluctuations are inconveniences but do not change the will of the people.
The U.S. on the other side is rather fragile. Even only mildly unconformable circumstances will lead to political pressure. One percent more or less of inflation will change the election chances for this or that party.
The consequences of the blockade of Hormuz are starting to come in:
Even if the Strait would reopen tomorrow it would take twelve to eighteen months for oil wells to be pumped again, storages to be refilled and production chains to go back to normal. As the conflict is likely to re-ignite we can expect years of supply problems.
Today’s increase of CPI and PPI numbers is just the beginning of larger increases in the cost of living.
