The “Peace Dividend” Thesis Explained | Art Laffer

Resolution of the Iran conflict and reopening of the Strait of Hormuz could trigger a major economic 'peace dividend' by rapidly shifting oil markets from tightness to oversupply.

Dr. Art Laffer argues that years of high oil prices have already stimulated massive new global production, which could suddenly hit the market once geopolitical risk fades.

A sharp drop in energy prices would act as a major economic stimulus, reducing costs across transportation and manufacturing while accelerating U.S. economic growth.