Gordo14 said:OldArmy71 said:
Lots of smart people on this thread who know a lot.
Someone answer me:
What is going to be the effect on the common American of Iran blowing up the oil and gas infrastructure of the ME?
Global commodity markets are all interconnected. If Japan can't buy oil from Saudi Arabia anymore they will buy from the US. If we ban exports from Japan it will only make a bigger disaster for arguably our closest ally, will create incredible economic inefficiencies in the market (which all have costs), and this is all before we discuss how interconnected our economy is with Japan and the consequences to American businesses if Japan's economy starts to go into economic shock. Now add the same story with South Korea, Taiwan, UK, Spain, France, Germany, Sweden, Poland, Finland, Italy, Greece, etc. Sure, America is much better hedged as an economy to the initial shock. But the following economic consequences will be awful, and what about our political capital. We have long ago already become an unreliable partner to all of the countries we are the most economically interconnected with. Now we're just straight up ****ing them over.
Everyone is clowning this guy but he's not wrong. The last of the crude that was able to get out of the strait of arriving in Asia now. Once the deliveries stop, Asia is in serious trouble. Jet fuel prices are already through the roof, diesel will be following. Asian buyers now pulling LNG away from Europe to fill in for Qatari LNG, resulting in European LNG skyrocketing. The crude trading desk at my company (a major) is sounding every alarm possible for how serious of an event this is about to be when the crude deliveries stop here shortly.