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Response to pbmus (Original post)

Fri Sep 22, 2017, 12:15 AM

2. There is a much more basic geopolitical reason.

Forty percent of all world traded oil passes through the Straits of Hormuz.

Currently there is a substantial over production of oil and energy production. Not only is the US and Europe making big strides in production of renewal and natural gas production but there is a huge production in off shore production off of Brazil. Price of a barrel of oil collapsed from $ 80 per barrel to $ 28, below the cost of production in December of 2015.

If the Straits of Hormuz becomes militarized oil freighters can no longer be underwritten for insurance and the amount of oil that is traded will dramatically drop and prices will increase dramatically.

Russia's flagging natural gas and oil production will see immediate increase in value, pressure against the embargo will dissipate so it is a big plus for Russia. Saudi Arabia will see their revenues increase substantially but even more importantly the center of power in the ME will shift their way.

In the US the big carbon producers, especially Exxon will see a return to huge profits and the investment made in Trump will be returned.

If you want to know the basic reason that Iran is the target of hostility look at the map or you could just play a game of the classic board game Risk.

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Arrow 5 replies Author Time Post
pbmus Sep 2017 OP
lame54 Sep 2017 #1
LineNew Reply There is a much more basic geopolitical reason.
grantcart Sep 2017 #2
CanonRay Sep 2017 #3
raven mad Sep 2017 #4
pbmus Sep 2017 #5
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