RadCasts

People in the U.S. send a lot of money abroad: In 2024 alone, about $93 billion in formal remittances were sent overseas. However, a new federal remittance tax imposes a 1% levy on certain transfers. While a 1% tax may not sound substantial, it can drive up the price of sending money and hit unbanked individuals hard. We dig in. But first, the U.S. dollar has been gaining strength. Why is that happening?

The effective closure of the Strait of Hormuz due to the war with Iran is having all sorts of effects on energy markets and the flow of other commodities—like fertilizer. Roughly one third of the world’s fertilizer passes through the narrow waterway in the Persian Gulf. On today’s show, the Council on Foreign Relations’ Michael Werz joins Kimberly to make the case that the ongoing disruption to the fertilizer trade is causing a chain reaction that could raise food prices and intensify humanitarian crises across the globe.

Here’s everything we talked about today:

• "The Iran War’s Hidden Front: Food, Water, and Fertilizer" from the Council on Foreign Relations
• "The Iran War’s Other Energy Shortage—Food" from The Wall Street Journal
• "Energy shock talk grabs headlines but the Iran war is also driving the world towards a food crisis" from The Guardian
• "Russia reaps fertiliser windfall from Iran war" from The Financial Times

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