Not a forecast. The mechanism behind it.
Live · May 2026 Hormuz · Day 86 · 28 February 2026 →

The impact
of the impact
of the impact.

of the impact. of the impact. of the impact.

Every geopolitical event eventually becomes personal. It just takes time — and nobody shows you the route. Hormuz has been closed for 86 days. Here is where it is going. All the way down. To your wallet.

Day 86
Hormuz closure
28 Feb 2026
98%
Tanker traffic
reduction
10
Economic pillars
impacted
30+
Transmission levels
traced below

You know Hormuz is making a mess.
Nobody is showing you where it lands.

Bloomberg tells you Brent is $116.73 (25 May 2026, +62% vs pre-crisis $72). The FT tells you shipping costs are up. The IMF tells you GDP is revised down. Every source stops at level two or three — the macro effect — and leaves you to figure out what it means for your situation.

Nobody traces the full chain. From the geopolitical event, through every institutional layer, all the way down to the specific price you pay, the specific cost your business absorbs, the specific number your board will ask about in three weeks.

PHM traces the chain. All the way down. Ten economic pillars. Thirty levels deep. Every branch traced to its endpoint — your wallet, your business, your household, your institution. The mechanism documented at every step so you can verify it yourself.

Live document · Updated as Day count increases and transmission activations confirm · Last updated 25 May 2026

Every chain shown simultaneously. Hormuz at the centre. Click any node to trace its path — from the event through every institutional layer to your wallet. Ten pillars. Thirty levels. One map.

Live · Day
10 pillars · 30+ levels
Drag to pan  ·  Scroll to zoom  ·  Click any node to trace the chain
Pillar 01 · Energy

Your energy bill
is a Hormuz problem.

The obvious chain. But it doesn't stop at the petrol station. It runs through every institution, every household, every business that uses power — at different speeds.

€46.63
TTF gas
25 May 2026
Level 01 · The event
Hormuz closed. Day 86. IRGC blockade active since 28 February 2026; officially confirmed 2 March. US naval blockade on Iranian ports active from 13 April 2026. Per IMF PortWatch: 2 commercial vessels transited the strait (17 May) against typical 95/day — 98% throughput reduction. 282 vessels stranded in/around the Gulf (132 anchored + 150 stopped) per AIS data. US-Iran agreement in principle reached 24 May 2026 per US official to NYT; phased deal under negotiation; physical reopening pending.
Level 02 · LNG transmission
Qatar Ras Laffan offline. World's largest LNG facility. Force majeure since 2 March. 20% of global LNG supply disrupted. Won't return to full capacity until August. Active now
Level 03 · European gas benchmark
TTF at €46.63/MWh (25 May 2026) — above the 2022 industrial curtailment threshold (~€40). When TTF crossed €40 in 2022, Yara shut four fertiliser plants. BASF curtailed Ludwigshafen for the first time since 1865. The 2022 threshold has been continuously breached since the Hormuz closure. Active now
Level 04 · Industrial energy costs
Energy-intensive industries — steel, chemicals, cement, glass — absorbing input cost increases of 18–34%. Forward contracts repricing. Q3 production cost budgets are already wrong.
Level 05 · Electricity generation
Gas peaker plants set marginal electricity pricing across Europe. TTF at €46.63 means electricity prices rising even for consumers on renewables tariffs — the grid marginal price is set by gas. Your solar panel doesn't insulate you.
Level 06 · Winter storage risk
Europe enters spring refill season with Qatar LNG offline. Storage injection will be slower and more expensive. Next winter's gas prices are being set now by what doesn't go into storage in May and June.
Compound interaction: The food pillar's fertiliser chain activates at the same TTF threshold. Two pillars, one trigger.
Level 07 · Data centres & cloud
Data centres consume 2–3% of global electricity. Cloud computing costs rising. Every SaaS subscription and every business running on infrastructure it doesn't own absorbs this. +6–10 weeks
Level 08 · Public services
Hospitals, schools, government buildings — all on energy budgets set before Day 1. NHS trust energy budgets running 22–28% above forecast. Competes with staffing and equipment. The healthcare pillar starts here.
Where it lands
"Your electricity bill this November is being set by a decision made in a strait 86 days ago. The storage that should have been injected in May won't be. The winter price is already forming."
Transmission: Active now → peaks November–December 2026
Also running: Energy feeds inflation (pillar 4), housing (pillar 6 — ECB constraint), labour (pillar 7 — curtailment threshold), and healthcare (pillar 5 — operating budgets). One trigger. Five simultaneous chains.
Pillar 02 · Food

Your coffee.
Your bananas.
Your 2027 shop.

Two food chains running simultaneously at different speeds. The first hits your basket in weeks. The second is forming a supply crisis for 2027 that almost nobody is watching.

+23%
Coffee import
cost increase
Level 01 · Fertiliser chain — activates at TTF €40
Ammonia synthesis requires natural gas as feedstock. At cascade peak €47/MWh (now €44), European fertiliser production margins are negative. Yara and BASF curtailment decisions identical to 2022. Active now
Level 02 · Global fertiliser prices rising
European production curtailed. Global fertiliser prices rising across nitrogen, phosphate, potash. All crop types affected. Active now
Level 03 · Planting decisions for 2026–2027 harvests
Fertiliser is 30–50% of variable farming costs. Farmers making planting decisions right now with rising input costs. Some will reduce planted area. This is the 2027 food supply problem forming in real time. +6–9 months to harvest
Level 04 · Refrigerated freight — the reefer chain
Cape rerouting adds ~14 days per leg. Reefer container premiums significantly elevated on Cape-routed perishables — fruit, vegetables, dairy, meat, fish — absorbing the cost now. Specific reefer multipliers vary by carrier and lane. Active now
Level 05 · Coffee — two chains arriving simultaneously
Chain A: Hormuz → TTF €46.63 (25 May 2026) → fertiliser costs up → Brazil/Colombia/Vietnam farming costs up → harvest cost per kg rising.
Chain B: Cape rerouting → container surcharges $750–$1,200/TEU → green coffee import cost up → roaster margin compressed → retail price up.
Two chains. Same shelf price. +4–8 weeks to shelf
Level 06 · Bananas and fresh produce
Ecuador and Costa Rica export costs up. Reefer premium hitting Dole, Chiquita, Fyffes directly. And simultaneously — DXY compression reducing farm worker purchasing power in EM growing regions, affecting 2027 harvest labour. The price today and availability next year are both Hormuz effects. +2–4 weeks to shelf
Level 07 · The Coke bottle — packaging chain
PET plastic requires petrochemical feedstock. Energy costs up → petrochemical costs up → PET price up → Coca-Cola, Pepsi, Unilever packaging costs rising. The move from plastic to cardboard being accelerated not by conscience — by Hormuz economics. +6–12 weeks to repricing
Level 08 · The 2027 food security signal — forming now
This is the chain nobody is watching. Fertiliser curtailment now → reduced planted area H2 2026 → lower yields 2027 → food price inflation extending well beyond Hormuz closure. Ras Laffan returning to capacity in August does not reverse the planting decisions being made this week.
Where it lands
"Your weekly shop will cost more — some in weeks, some in months, some in 2027 for reasons forming right now while everyone watches the oil price."
Transmission: Weeks (fresh produce) → Months (packaged) → 2027 (grain, staples)
Compound interaction: Food is 15–20% of household CPI baskets. Rising food costs compound with energy cost rises producing purchasing power compression the ECB rate hold cannot address without risking the housing market.
Pillar 03 · Logistics & Supply Chain

The thing you ordered
that hasn't arrived.

Not just cost. Availability. The logistics pillar is the infrastructure through which every other pillar moves. When it strains, everything else compounds.

+14
Days per leg
Cape rerouting
Level 01 · Rerouting
Cape of Good Hope mandatory for most commercial shipping. +14 days transit per leg. 9 of the 9 largest container carriers (MSC, Maersk, CMA CGM, COSCO, Hapag-Lloyd, ONE, Evergreen, HMM, Yang Ming) have suspended or rerouted Hormuz transits. Cape surcharges currently $750–$1,200 per TEU depending on carrier (MSC $1.2k/TEU, Maersk $1.0k/TEU, Hapag-Lloyd $1.1k/TEU). 98% of Hormuz traffic affected. Active now
Level 02 · Container availability collapsing
Longer routes mean containers spend more time at sea. Empty container availability at origin ports falling. The next shipment can't leave because the containers aren't back yet. Lead times extending beyond the 22-day addition. Active now
Level 03 · Lean supply chains breaking
Safety stock was calculated for pre-Hormuz lead times. A 22-day transit extension breaks just-in-time cycles. Stockouts forming in categories where reorder cycles were already tight. +4–8 weeks
Level 04 · Emergency surcharges
Maersk, Hapag-Lloyd, CMA CGM running $1,500–$3,500 per container emergency surcharges. Iran corridor tolls at $2M per vessel. These costs land on importers and pass to retailers. Active now
Level 05 · Amazon and e-commerce
The two-day delivery promise is a Hormuz problem. The Prime guarantee absorbing logistics cost increases or extending lead times. Both simultaneously. +6–10 weeks
Level 06 · Semiconductors and electronics
Taiwan and South Korean exports through Hormuz-affected lanes. Component delivery times extending. The next iPhone costs more or arrives later. Both. +8–14 weeks
Level 07 · Pharmaceutical APIs
80% of active pharmaceutical ingredients manufactured in India and China — routed through affected lanes. Some generics already showing supply constraints. Feeds directly into the healthcare pillar. +6–10 weeks
Where it lands
"The thing you ordered that hasn't arrived. The out-of-stock notice on what you buy every month. The delivery estimate that keeps moving. Some of this is Hormuz."
Transmission: Active now → extending through Q3 2026
Pillar 04 · Inflation

Not one inflation.
Five waves.
Different speeds.

The ECB is managing the first wave. The second, third, fourth, and fifth haven't arrived in CPI yet. The central bank doesn't know what it doesn't know.

2.6%
ECB 2026
inflation forecast
Wave 1 — Energy · Arrives 2–4 weeks
Already visible in March and April CPI. Petrol, diesel, domestic energy. The ECB saw this and held at 2.00% in March. This is the wave they're managing against. Wave active
Wave 2 — Food · Arrives 6–10 weeks
Forming now. Not yet in published CPI. Fresh produce first, then packaged goods. Food is 15–20% of EU household CPI. Invisible to the ECB's current data. +4–6 weeks to CPI
Wave 3 — Manufacturing inputs · Arrives 8–12 weeks
Steel, chemicals, cement, electronics absorbing energy and logistics cost increases. Pass-through to consumer goods prices on a 6–10 week lag. +6–8 weeks to retail
Wave 4 — Services · Arrives 12–16 weeks
Hospitality, transport, professional services absorbing cost increases and repricing. The stickiest wave. Service prices don't come back when the signal event resolves. +10–14 weeks
The ECB constraint
ECB held at 2.00%. Cannot cut — waves 2, 3, and 4 haven't arrived in CPI yet. Cannot hike aggressively — growth and housing fragile. Constrained by a compound inflation sequence it cannot fully model because the later waves are not yet in the data. Constraint active
Real wage erosion
Nominal wages cannot adjust at compound inflation speed. Four waves at four different speeds. Real purchasing power falling faster than any pay review can track. Compound factor: 1.8×–2.6× the impact of any single wave alone. +12–18 weeks to household impact
Where it lands
"Your pay rise didn't keep up. It wasn't negotiated wrong. The compound inflation arrived in four waves at four different speeds — and your salary review only happened once."
Transmission: Wave 1 active · Waves 2–4 arriving Q2–Q3 2026
Pillar 05 · Healthcare

The appointment
that got pushed.
This is why.

Nobody connects healthcare to geopolitics. The transmission path runs through both logistics and energy simultaneously — and it lands in waiting rooms and empty pharmacy shelves.

APIs
Pharmaceutical
supply at risk
Level 01 · Pharmaceutical supply chain
80% of active pharmaceutical ingredients manufactured in India and China, shipped through Hormuz-affected routes. Logistics cost increases of 2.4× hitting medicine procurement. Generic medicines already showing supply constraints. Active now
Level 02 · Hospital energy budgets
Hospitals are among Europe's most energy-intensive buildings. NHS trust energy budgets running 22–28% above Q2 2026 forecast. Competes with staffing and equipment procurement. The energy cost increase is a healthcare capacity problem.
Level 03 · Medical device procurement
Medical devices contain semiconductor components routed through affected lanes. Equipment procurement lead times extending 8–14 weeks. Hospital capital investment cycles disrupted. +8–14 weeks
Where it lands
"The medicine that's out of stock. The appointment pushed because the ward is short-staffed because the budget went on energy. Some of that is Hormuz. Here is the chain."
Transmission: Active now → Q3 2026 peak pressure
Pillar 06 · Housing

Your mortgage rate
isn't falling.
Here is why.

The rate cut you expected. The construction costs that keep rising. The housing affordability that keeps worsening. Part of all of this is a Hormuz compound.

2.00%
ECB held
March 2026
Level 01 · ECB rate constraint
Market was pricing ECB cuts in Q1 2026. Hormuz inflation sequence — four waves, three still incoming — prevents cutting without reigniting inflation. Your mortgage rate isn't falling because the ECB can't cut because Hormuz hasn't finished arriving in CPI. Active now
Level 02 · Construction costs
Steel, cement, copper, insulation — all affected by energy or logistics chains or both. Construction cost indices 18–24% above pre-Hormuz baselines. New housing development stalling or repricing. +8–14 weeks
Level 03 · Household disposable income
Energy costs up. Food costs up. Real wages behind compound inflation. More household income absorbed by non-discretionary costs — leaving less for mortgage payments and savings. The housing affordability crisis deepens not because house prices rose but because income available to service them fell.
Where it lands
"Your fixed rate is coming up for renewal. The rate you'll get is higher than you planned because the ECB can't cut because Hormuz hasn't finished arriving in the inflation data."
Transmission: Active now → rate-dependent on Hormuz resolution timeline
Pillar 07 · Labour & Employment

The redundancy
that came
out of nowhere.

Employment is the most lagged indicator in the chain. The energy threshold crossed six weeks ago. The curtailment decisions are happening now. The employment effect arrives in 8–12 weeks.

−12%
EM purchasing
power compression
Level 01 · Industrial curtailment threshold
TTF at €46.63/MWh (25 May 2026), above the 2022 Yara/BASF industrial curtailment threshold (~€40). In 2022 it triggered plant shutdowns within 4–6 weeks of crossing. Curtailment decisions are being made in boardrooms this week. Forming now
Level 02 · Output reductions and short-time working
Chemicals, steel, aluminium, fertiliser, glass reducing output to manage energy exposure. Short-time working activated first. If signal holds at current levels through Q3, redundancy programmes follow. +8–12 weeks
Level 03 · Supply chain multiplier
One curtailed plant reduces demand for its entire supply chain. The employment effect multiplies upstream. Mining, transport, maintenance, specialist services. The redundancy announcement that looks sudden has a 86-day signal history.
Where it lands
"The plant cutting hours. The announcement that came without warning. The energy cost threshold crossed six weeks ago. The employment effect is the last thing to arrive — and the hardest to reverse."
Transmission: +8–12 weeks from threshold · Q3 2026 risk window
Pillar 08 · Capital & Investment

The capital
is already moving.
Is your model watching?

Institutional capital is reweighting. Every capital allocation made before 28 February is running on incorrect assumptions. The preparation window for the compound opportunity is open now.

€840B
AUM reweighting
to infrastructure
Level 01 · Capital allocation misalignment
Every capital allocation made before 28 February 2026 was built on pre-Hormuz assumptions. Return projections, payback periods, scenario ranges — all calculated against a signal environment that no longer exists.
Level 02 · Renewable energy window — open now
TTF at €46.63 flips industrial renewable payback from 12–15 years to 5–7. 1,200+ industrial companies simultaneously at peak energy cost urgency. €840B of institutional capital reweighting toward infrastructure. Preparation window: 18 months, open now. Window open
Level 03 · Pension fund rebalancing
Pension funds and sovereign wealth funds holding positions against pre-Hormuz return assumptions are accumulating unrealised exposure. When models are updated, the rebalancing will be large and rapid. Most have not yet updated the models.
Where it lands
"The pension fund reweighting. The infrastructure project that got funded. The capital allocation your retirement depends on — moving based on a signal environment most models built before February haven't absorbed yet."
Transmission: Preparation window open now · 18 months · Closes as signal resolves
Pillar 09 · Consumer Purchasing Power

You're buying less.
Not because
you changed.

The consumer pillar is where every other pillar converges. It is the endpoint of all ten chains. Everything eventually arrives here.

−18%
UAE purchasing
power (DXY)
Level 01 · DXY and EM purchasing power compression
DXY at 98.6 compressing purchasing power across EM markets simultaneously. UAE −18%. South Africa −24%. Brazil −28%. Turkey −31%. Same signal. Different currencies. Brand preference shifts toward price when purchasing power falls. Active now
Level 02 · Brand preference erosion
In every DXY compression cycle since 2015, brand erosion toward private label accelerated when purchasing power fell more than 12%. We are at that threshold in four major EM markets simultaneously.
Level 03 · Retailer promotional pressure
Tesco, Carrefour, Rewe, Aldi responding to the same purchasing power compression — passing promotional demands upstream to FMCG manufacturers. Both sides responding to the same DXY signal from opposite ends of the chain.
Level 04 · The convergence point
Energy costs up. Food costs up. Mortgage rate held. Real wages behind. Purchasing power compressed from all directions simultaneously. The compound factor is not 1+1+1+1. It is 1×1.3×1.6×2.1×2.6. This is why you're buying less. Not one thing. The compound of all things arriving at once.
Where it lands
"You're spending more and getting less. Not because you changed your habits. Because the compound arrived from four directions at once and your purchasing power absorbed all of it."
Transmission: Active now → compound peak Q3 2026
Pillar 10 · Trade & Geopolitics

The decisions
being made now
won't reverse.

The second-order effects that persist beyond resolution. When countries and companies make strategic decisions during a disruption, they rarely undo them when it ends.

Years
Path dependency
horizon
Level 01 · Energy policy rewiring
Japan's LNG procurement strategy is changing permanently. India locking in alternative oil routing. Germany accelerating LNG terminal infrastructure. Multi-year capital commitments being made during a 86-day closure. Trade flow patterns that will persist 10–15 years after Hormuz reopens.
Level 02 · Supply chain relocation
Every company that experienced a 22-day transit extension is evaluating nearshoring. Vietnam, Poland, Morocco, Mexico seeing accelerated FDI interest. The APAC industrial nearshoring wave is a Hormuz effect running forward into 2027 and 2028.
Level 03 · The path dependency problem
When Hormuz reopens, Brent will fall. Some logistics costs will normalise. But energy policy decisions, supply chain relocations, capital allocation reweightings — these do not reverse. The world emerging from a 86-day Hormuz closure is structurally different from the one that entered it.
Where it lands
"When Hormuz reopens, some prices will fall. But the product now made somewhere different, the trade route that changed, the supplier that shifted — these decisions are being made this week and they won't reverse."
Transmission: Forming now → path dependency extends 5–15 years
Pillar 11 · Travel & Aviation

Your flight
costs more.
And won't come back down.

Lufthansa cancelling routes for later in the year. United raising ticket prices. The aviation chain is one of the most direct Hormuz transmission paths — and one of the stickiest. Once airline pricing and capacity decisions are made, they don't reverse when the event resolves.

+18%
Jet fuel cost
increase
Level 01 · Jet fuel — the direct link
Jet fuel (Jet A-1) is a direct derivative of crude oil. Brent at $116.73 (25 May 2026, +62% vs pre-crisis ~$72) means jet fuel costs up 18–22% for airlines. Fuel is 25–35% of airline operating costs in normal conditions. At current Brent levels, it is the single largest cost line. Active now
Level 02 · Hedging positions expiring
Airlines hedge fuel costs 6–18 months forward. The hedging contracts that insulated airlines through Q1 2026 were written before Hormuz Day 1. As those positions roll over into Q2 and Q3, airlines are absorbing $116+ Brent prices with no hedging cushion. The fuel cost hit is arriving now even for airlines that hedged well. Active now
Level 03 · Route cancellations — Lufthansa
Lufthansa cancelling routes for Q3 and Q4 2026 — particularly long-haul routes through Middle East airspace and routes where fuel cost makes the economics marginal. This is not a demand decision. It is a margin decision driven by a $116+ Brent world. Once a route is cancelled and slots are reallocated, reactivation takes 6–12 months minimum. Decisions made now
Level 04 · Ticket price increases — United
United Airlines raising ticket prices across transatlantic and long-haul routes. The mechanism: fuel surcharges built into base fares, yield management repricing against reduced capacity, and forward booking curves adjusted for higher cost floors. United is the first major to move publicly — others follow within 4–6 weeks of a pricing signal this clear. Active now
Level 05 · Capacity reduction compounds pricing
Fewer routes plus reduced seat inventory on remaining routes means supply falls while demand stays constant. Basic yield management does the rest — prices rise further than the fuel cost increase alone would justify, because the capacity constraint amplifies the pricing power. The compound of fuel cost + capacity reduction is larger than either alone. +4–8 weeks full impact
Level 06 · Middle East airspace rerouting
Airlines that previously routed through Gulf airspace — particularly for Europe–Asia routes — are rerouting north. Adds 1–3 hours to flight times, increases fuel burn per flight by 8–15%. Emirates, Etihad, Qatar Airways most directly affected — their hub economics depend on Gulf routing. European carriers rerouting through Turkish or Central Asian airspace absorbing additional cost. Active now
Level 07 · Business travel budgets repricing
Corporate travel managers repricing Q2–Q4 2026 travel budgets upward. Business travel represents 20–30% of airline revenue at 3–5× the yield of leisure travel. When corporate budgets absorb 18–22% fare increases, the cost lands in every business P&L that has a travel line — consulting firms, professional services, executive teams, sales organisations. +4–6 weeks to P&L
Level 08 · The irreversibility problem
This is what makes the travel chain different from energy or food. When Hormuz reopens and Brent falls, fuel costs normalise within weeks — but airline ticket prices do not. Airlines reprice upward quickly and downward slowly. Slot allocations changed by route cancellations don't revert automatically. Yield management systems recalibrate to new floor prices. The travel price increase triggered by Hormuz Day 86 will outlast Hormuz Day 86 by 12–18 months.
Where it lands · Your itinerary
"The flight that costs more than you planned. The route that's no longer available. The summer holiday budget that doesn't stretch as far. Some of this is Hormuz — and unlike the energy bill, it won't come down when the strait reopens."
Transmission: Active now · Irreversible component: 12–18 months post-resolution
Compound interaction: The travel chain interacts with the business travel P&L (corporate costs up), the consumer pillar (discretionary spend compressed), and the trade pillar (path-dependent capacity decisions). The irreversibility element makes this one of the longest-lasting Hormuz transmission effects — outlasting the event by over a year.
The chain · All the way down

Ten pillars.
Thirty levels.
One wallet.

Every chain — no matter how long, no matter how many institutional layers — ends at the same place. One person. One wallet. One decision about what they can still afford. That is the impact of the impact of the impact of the impact.

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