> Trump's solution to the Strait of Hormuz is genius.

https://finance.yahoo.com/news/trump-cl … 00997.html

But his assertions that the fate of the US won’t be impacted by disruptions to Middle East oil supply overlook key goods that come from the region and global energy interdependence, which anyone who has filled up a gas tank in the last month is all too aware of.

Trump is correct that the US doesn’t “need” oil from the region, as the US is a net exporter of both crude oil and natural gas.

But Americans will feel the effects of a global supply shortage no matter what.

The global nature of oil markets means that a shortage anywhere translates into rising prices not just in Asia, where most oil that passes through the Strait of Hormuz is sent, but around the world. Around a fifth of the world’s supplies pass through the 21-mile-wide waterway between the Persian Gulf and the Gulf of Oman.

Net exporter status “has essentially no impact on the prices Americans pay at the pump,” Clark Williams-Derry, an energy finance analyst at the Institute for Energy Economics and Financial Analysis, told PolitiFact in a recent fact-check of the Trump administration’s contentions around this issue.

Americans are now paying an average of $4.08 for a gallon of gasoline, according to the American Automobile Association, a jump of more than a dollar since hostilities began.

Trump is also overlooking that while the US is a net exporter of crude oil, it remains an importer of refined gasoline in many regions.

The president is factually wrong about other key goods that pass through the strait. Those shortages have already been felt directly in the US and indirectly through rising global prices for those goods.

Helium and fertilizer are two notable products made in high quantities in the region and relied on by US industries.

0% chance they antagonize anyone enough to prevent them from buying Iran's oil.

General Electric wrote:

NO ONE is going to let Iran set the terms for the petrodollar or equivalent.   Currently the Iranians have to sell their petroleum at a significant discount so that it is worthwhile for consumers to defy sanctions.  How come no one ever mentions Iran's 50% inflation rate?

  what sanctions?  Those are fuqing gone and right now today Iran is selling everything they’ve got for $130+ a barrel delivered to Asia.  The only reason Brent and WTI prices are lagging Asia is because it takes weeks to reposition tankers.

wrote:

Iran also wants $2m per ship as a toll, and they'll get it.

To be accurate… they’re asking for just under 14M yuan for passage, not USD… and they’re getting it.

VP_Spiro_T_Cheney wrote:

To be accurate… they’re asking for just under 14M yuan for passage, not USD… and they’re getting it.

Meh.  Iran collects tolls for a month... one B-2 bomb run on something expensive, zeroes the account.

wrote:

Iran also wants $2m per ship as a toll, and they'll get it.

Two million dollars!

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WTI $112+

$10 diesel coming soon to a pump near you.

I shyt my diaper!
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Genius!
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