No end in sights for the economic consequences of the war.

From Marketplace, I'm Sabri Benishore in New York.

The U.S. is threatening a blockade of Iranian ports and to stop any ship that has paid a toll to Iran, which was the main method of getting through the straight up till now.

This blockade would start minutes from now at 10 a.m. Eastern.

Iran has said it would respond if that blockade happens,

threatening ports in Gulf states and the flow of oil.

Oil prices are up about 7 percent.

Julia Cornado is president of macro policy perspectives and a professor U.T. Austin.

The critical issue is that, yes, now it's a broader blockade, and that means the oil supply is

even more restricted than it was before. So not only is the Strait of Hormuz closed,

but Iran has no other, if it's effective, no other option to get oil out.

So even less oil for the global market.

Meanwhile, Iran has threatened that no port in the Persian Gulf is safe if its ports aren't.

And it could use its proxies in Yemen to close the Bob El Mandeb straight over on the other side of the Gulf, which is Saudi Arabia's

alternate route for exporting some oil. None of this looks good for oil prices.

It does not. And the longer it goes on, the more production is damaged and shut down because

there's no place to store the oil, and that's not a simple task. So shutting down and

reopening drilling operations is an extensive effort that takes time and weeks and many resources.

So even if all of this were to end tomorrow, we're already looking at a pretty extended disruption, even in

the best case scenario. And we are certainly not in the best case scenario.

Julia Coronado, founder and president of macro policy perspectives. Thank you, as always.

My pleasure.

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