Comment Re:Hormuz has frozen 20% of the oil and gas (Score 1) 152
1. Fertilizer is made from methane, so that's also stuck there. This is a HUGE problem for countries like India.
2. Poor countries are already switching to 4 day work weeks to save fuel.
3. Iran is letting ships whose balances are settled in Yuan leave. That means the power of the petro-dollar is under serious threat.
4. Countries that can no longer get Iranian oil are now buying non-Iranian oil, which drives the price of ALL oil up. There's speculation that it will hit $200/barrel. That's more than 3x what it was over the last few years. That will affect the price of literally everything. All transportation costs go up, so costs for all goods go up.
At some point, the price will get high enough that some countries won't be able to buy it at all, they'll give up. At that point, some interesting things might happen, since the demand drop-off vs. the price drop off will cause a wobble in the price. People will start looking elsewhere for energy.
Solar and small-battery vehicles (e-bikes, e-scooters) might start taking off even more. You might not be able to buy petrol for your car, but your e-bike charges quickly and can still tow a few hundred pounds worth of stuff. Maybe BEVs adoption will become even MORE popular, since it's one less way you have to directly pay for petrol.
But this war is all con. 100%. Like, Trump didn't even fill up the oil reserves before going to war. China's been buying oil for MONTHS at low rates now, so they're actually the least impacted here, despite the fact that they get a lot of oil from Iran. That means they have zero impetus (not that they had much previously) to do anything about this. This is purely punishment for the USA. Those are expensive weapons being wasted on Iranian targets (in some cases, planes that are actually just paint on the ground). It might be possible for the USA to open up the strait again, but the second they leave, Iran can just close it off again. This might be the most forever of the forever wars, or it might just be an outright defeat for the USA.
This whole thing is such a mess on so many different axes. I didn't even get into how Israel is driving a lot of this, and it's all because Netanyahu is a corrupt warmonger. He's firing in all directions, and he's relying on the USA to protect him.