Energy Security Is Back—And It Will Come at a Cost

Northern Trust argues that the current energy shock is not just a price event, but a structural reminder that energy dependence still carries strategic and economic consequences. 

• The closure of the Strait of Hormuz and damage to LNG infrastructure have triggered one of the largest oil supply disruptions in modern history, forcing countries to reassess energy security.
• Governments are responding with subsidies, price caps and targeted support, but these measures risk straining already fragile fiscal balances.
• In the U.S., larger tax refunds may help cushion some of the consumer hit, though rising fuel prices and household financial stress are likely to offset part of that relief.

If the disruption persists, the report suggests the world may move toward more secure—but also more expensive and carbon-intensive—energy systems.