Balaji Srinivasan, former CTO of Coinbase and ex-partner at a16z, issued a stark warning on X on March 19 regarding recent attacks on Middle East oil infrastructure. He called the move a "crazy idea" that could lead to global economic collapse and a humanitarian crisis.
Prices Skyrocket: From Food to Gasoline
Srinivasan stated that with inflation already elevated, the conflict will cause "prices of everything, from food to gasoline, to rise everywhere." He noted the pre-war status on February 27, 2026 was "not that bad" but the world has passed the point of no return. He urged the public to prepare for "indefinite, long-term, sustained disruption" across the Middle East.
Tech Funding Collapses, Capital Shifts to Basic Needs
For the tech industry, Srinivasan's prediction was equally grim. He argued that the plan to drag Gulf states into war has already burned limited partner (LP), data center, and IPO funding sources. "Assume tech funding will collapse for the indefinite future. Any tech person who supported this war will soon learn about 'force majeure' when their funding is pulled," he warned. He forecasted capital allocators will shift funds down Maslow's hierarchy of needs toward useful basic goods like food and energy.
Energy Independence: China's Coal-to-Chemicals and Power-to-X
Facing imminent energy shortages, Srinivasan stressed the absolute necessity of breaking dependence on Middle East oil. He sarcastically thanked progressives who warned of a "climate crisis," saying "they were wrong about the timeline but right about the outcome: we all need energy independence from the Middle East immediately." He named Elon Musk and China as "lucky" for taking climate seriously, as the world needs them to ship billions of solar panels, EVs, batteries, and nuclear plants. Srinivasan noted the crisis extends beyond oil and gas to fertilizers and chemical precursors. Since scaling production takes time, shortages are almost inevitable. He proposed two potential solutions: China's Coal-to-Chemicals (C2C)—already scaled up; and Power-to-X—a sci-fi-like tech converting arbitrary electricity, water, and air into hydrocarbons. He revealed that with his chemical engineering background, he may start investing in these areas. "Unless you can actually stop this madness, the pragmatic move is: mitigate the impact on yourself, your business, and your employees," he concluded.