The Hormuz Strait is currently the most important and vulnerable point of the global economy.
Why is everyone shouting about the situation in the Persian Gulf? Even China is ready to send its planes into Iranian airspace, and oil could soar to $90.
🤓 Let's figure it out!
🛢 20% of all the world's oil passes through the Hormuz Strait, which is only 33 km wide—this is more than through the Panama and Suez Canals combined.
35% of all maritime LNG (liquefied natural gas) also passes through it.
🌍 This is the only maritime outlet from the Persian Gulf to the open ocean—a strategic artery for oil exports from Saudi Arabia, Kuwait, the UAE, and other countries in the region.
🚫 Iran has threatened to close the strait more than 10 times since 2000. Just one such blockade is enough for oil to soar above $150 per barrel in a day.
🗺 Hormuz is the most militarized oil route in the world. The USA has been deploying forces there almost every decade—and has already increased its presence in recent days.
💥 Any attempt to close the strait almost guarantees a response from the USA, Israel, and allies.
📈 What do we have on oil?
Brent and WTI initially surged by 5-6%, then corrected on profit-taking: Brent stabilized around $76-78 per barrel, WTI around $74-75.#MarketPullback
#IsraelIranConflict