Because Iran has previously demonstrated its willingness to close the key trade route through the Strait of Hormuz, some media outlets are speculating that oil prices could soar to $100 a barrel or higher. They argue that this could cause a recession in the United States, which would spread across the global economy.

These fears are misplaced. Yes, the price of Brent Crude, the global benchmark, has climbed sharply to around $75 to $78 a barrel. But from the standpoint of economic activity, that is not a particularly troubling price. Several times in the past five years, Brent has traded above $90 a barrel without causing a recession in the U.S. or globally. World markets can weather oil prices in the $70s.