Iran says it's closing Strait of Hormuz again as Hezbollah and Israel trade attacks
The Strait of Hormuz will be closed again, Iran said Saturday, after accusing the U.S. and Israel of violating the memorandum of understanding by Israeli troops not withdrawing from southern Lebanon.
Back to Square 1.
What effect did this have on Oil Prices? Practically none. Oil still trading at $76. What does that tell you? What it tells me is that Demand Destruction has already set in. Everybody who can't afford over $80/bbl has dropped out of the buyers market. Thus, even with Hormuz closed, there is plenty of oil available for buyers at $76.
The problem of course is that even for economies that can afford the current price, it's taking money out of Konsumer pockets they would have used to buy other things, like new carz and toys for the kids and vacations. Thus economies slow down, biznesses lose customers, jobs are lost, recession sets in.
What's Chump's next move? Politically, I'd say he HAS to sanction Israel. He's gotta prove "he's the BOSS". What sanction would bite hard enough? I'd say no more Patriot missiles for defense. Israel would be a sitting duck for Hezbollah missile attacks. Will he have the balls for that? Probably not.
RE