General Discussion
In reply to the discussion: If the Strait of Hormuz doesn't open soon, as seems likely, there will be a massive economic crash [View all]
WSHazel
(875 posts)The UAE didn't want to be restricted by production quotas that Iran and Iraq were not going to abide by anyway.
The long-term horizon for oil is glut. There is long term demand destruction, and significant additional demand destruction as oil crosses $100/barrel. Trump is trying to create an artificial shortage by blockading the Strait, but the producers are finding a way around it and people are consuming less. The catastrophizing about the Strait is being driven by the White House to manipulate oil prices.
If Trump ordered the U.S. military to also blockade the Red Sea, which is not out of the question, then it would be time to panic. I also wouldn't put it past him to "accidentally" blow up Saudi shipping logistics.
Our President appears to be using our military to try to manufacture an artificial energy crisis for his own political and financial benefit. Let that sink in for a while.
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