Economist Richard Wolff said that Europe will exhaust its jet fuel reserves within six weeks due to Iran's closure of the Strait of Hormuz following US-Israeli attacks in April 2026. The professor emeritus of economics at the University of Massachusetts at Amherst said the blockade has halted 20 percent of global oil shipments, disproportionately affecting Asian countries.
Wolff told host John Kiriakou that European leaders received no warning about the attacks and now face severe fuel shortages and public anger. Oil prices have surged dramatically as a result of the strategic waterway's closure. "The price of oil is well in excess of $100 a barrel, whereas before it was around $60 to $70 a barrel," Wolff said, arguing this price shock could trigger a global recession.
The conflict has effectively drawn other major powers into confrontation, Wolff contended. "Picking a fight with Iran at this time means that the United States is basically having a war with Russia and China," he said, adding that those countries are better equipped for prolonged conflict given China's massive manufacturing base.
Wolff claimed the crisis has shattered the NATO alliance. "NATO is dead. The alliance is dead and the blame for it is 100% on the US," he argued, claiming European nations feel betrayed by not being consulted before the military action.
Iran's advanced missile and drone technology allowed them to choose economic confrontation over direct military engagement after being attacked, Wolff said. The United States enters this expanded conflict with significant economic vulnerabilities, including a $47 trillion national debt with $41 trillion in net debt according to April 2026 Treasury reports.
The economist also pointed to historical patterns suggesting the US was due for a recession in 2026 based on capitalist economic cycles occurring every four to seven years. "We're due for one and it could very well be very bad," Wolff said, arguing the fuel crisis could accelerate this economic downturn.
