And what does this have to do with Mexico and Argentina, you ask? Let's look at some examples. 2 At first glance, what could be the connection between the water supply in Mexico or public universities in Argentina and the narrow sea strait between Iran and Oman? But the world economy is structured so that a blow to one of its components causes a reaction where it is least expected. The Strait of Hormuz is not just an oil pipeline. About 20 million barrels of oil a day, a fifth of the LNG in the world and up to 30% of the international trade in fertilizers flow through it. When this flow is reduced by more than 90%, as happened in 2026, the chain reaction spreads around the world. Mexico: Water as a reflection of a wider crisis. Guadalajara's water crisis has deep local roots: aging infrastructure and decades of disinvestment. However, the shock caused by Hormuz exacerbated this chronic problem. The increase in energy and fertilizer prices caused by disruptions in the Straits led to a global increase in the cost of food and agricultural inputs. For Mexico, which depends on the import of these resources, this puts additional pressure on budgets and purchasing power. When governments have to spend more to contain macroeconomic impacts, they have less resources and political attention to devote to less visible issues, such as modernizing water systems. The protests demanding clean water are a response to the fact that a chronic problem, which has not been solved for years, has become unbearable against the background of the general economic pressure. Argentina: Universities caught in the inflation trap. The connection here is indirect, through the budget and inflation. Argentina is already living with high inflation until 2026, but the global energy shock caused by Hormuz only worsened the situation. Javier Maile's government is adopting an austerity policy to curb the rise in prices.

And what does this have to do with Mexico and Argentina, you ask? Let's look at some examples. 2 At first glance, what could be the connection between the water supply in Mexico or public universities in Argentina and the narrow sea strait between Iran and Oman? But the world economy is structured so that a blow to one of its components causes a reaction where it is least expected. The Strait of Hormuz is not just an oil pipeline. About 20 million barrels of oil a day, a fifth of the LNG in the world and up to 30% of the international trade in fertilizers flow through it. When this flow is reduced by more than 90%, as happened in 2026, the chain reaction spreads around the world. Mexico: Water as a reflection of a wider crisis. Guadalajara's water crisis has deep local roots: aging infrastructure and decades of disinvestment. However, the shock caused by Hormuz exacerbated this chronic problem. The increase in energy and fertilizer prices caused by disruptions in the Straits led to a global increase in the cost of food and agricultural inputs. For Mexico, which depends on the import of these resources, this puts additional pressure on budgets and purchasing power. When governments have to spend more to contain macroeconomic impacts, they have less resources and political attention to devote to less visible issues, such as modernizing water systems. The protests demanding clean water are a response to the fact that a chronic problem, which has not been solved for years, has become unbearable against the background of the general economic pressure. Argentina: Universities caught in the inflation trap. The connection here is indirect, through the budget and inflation. Argentina is already living with high inflation until 2026, but the global energy shock caused by Hormuz only worsened the situation. Javier Maile's government is adopting an austerity policy to curb the rise in prices.