The oil shocks of the 1970s forced traumatic austerity on Americans. Some gas stations had miles-long lines; fuel was rationed based on whether a car's license-plate number was even or odd; the White House Christmas tree went unlit; daylight savings was imposed year-round. The fuel crisis that America's war on Iran has unleashed is far larger'the biggest oil-supply shock in history, an estimated three times the disruption caused by the Arab oil embargo. Iran has effectively cut off the Strait of Hormuz, through which one-fifth of the world's oil and liquefied natural gas (LNG) flowed until recently. And yet, unlike in the '70s, America is now an energy superpower, largely insulated from the economic pain caused by its actions, which instead are now being borne by Asia and will soon reach Europe. The dynamic is like a psychology experiment played out on a global scale: America can administer shocks to other countries without feeling much pain itself. The man at the control panel is...
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