No one talks about this enough

Everyone is focused on the bombs. Not enough people are paying attention to the water supply. The Strait of Hormuz is currently CLOSED, and if this situation persists, it will affect everyone reading this article. Here’s what will happen next: The strait is 21 miles wide. The shipping lane is 2 miles wide in each direction. Currently, traffic flow is ZERO. Every day, 20 million barrels of oil pass through it. This accounts for 20% of the world’s total oil reserves. OIL: – Brent crude oil price is at $83. Analysts predict a minimum of $100 if this continues. Deutsche Bank forecasts prices could reach $200 in case of a complete blockade. – JPMorgan: if this lasts more than 3 weeks, oil storage in the Gulf will be full. Production will have to stop. Brent crude oil hits $120. – Only 2.6 million barrels of oil per day can be transported via pipelines. Out of the total 20 million barrels. No feasible alternative solutions. NATURAL GAS: – 20% of global liquefied natural gas (LNG) passes through this strait. Nearly all of Qatar’s LNG, the world’s largest exporter, goes through here. – QatarEnergy declares force majeure. Production is halted. Future gas prices in Europe nearly double within 48 hours. – 30% of Europe’s airline fuel passes through here. – Pakistan imports 99% of its LNG from Qatar and the UAE. Bangladesh imports 72%. India imports 53%. Prolonged closure leads to power outages. ASIA: – 84% of oil from the Strait of Hormuz is exported to Asia. China, India, Japan, and South Korea account for 69% of the total oil passing through this strait. – Japan imports 95% of its crude oil from the Middle East. Prolonged closure causes the yen to collapse. Stagflation ensues. – South Korea transports 68% of its goods through the Strait of Hormuz. That’s why the KOSPI index just experienced its biggest drop since 2008. – India faces a double impact. Half of its LNG is linked to the Gulf region AND priced according to Brent. Spiking crude oil prices mean LNG prices also soar. – China imports 11 million barrels of oil daily. Half from the Middle East. 90% of Iran’s oil. If the strait closes, they will have to compete with other countries to ship goods across the Atlantic. TRANSPORTATION: – Maersk, Hapag-Lloyd, MSC, CMA CGM have all suspended operations. Rerouting around Africa adds WEEKS to transit times. – Insurance has been completely canceled. As of March 5, there is no coverage. Ship owners cannot pass through ports even if they want to. – Supertanker charter rates have skyrocketed from $37,000/day to $177,000/day. These costs are passed on to consumers. – Houthi forces resume attacks in the Red Sea. The Suez route is also affected. Both choke points are under threat simultaneously. INFLATION: – Brent crude oil prices have risen 36% since the beginning of the year. Sustained high oil prices mean inflation accelerates again. The Fed cannot cut interest rates. – Energy costs affect everything. Food. Transportation. Manufacturing. Electricity. – An analyst states: “The severity could be three times worse than the Arab oil embargo of the 1970s.”

Week 1 can still be managed. Strategic reserves help mitigate the impact. By week 3, storage is full, production halts, and prices spike. This is the part of the conflict that directly impacts YOUR wallet. I will continue monitoring the situation and updating you. This will affect everyone worldwide. Turn on notifications so you don’t miss anything. Many will wish they had followed me sooner.