Never happened before

Iran is currently threatening to CLOSE the Strait of Hormuz.
This is the world’s LARGEST oil chokepoint.
And if you think it doesn’t affect other markets,
YOU ARE COMPLETELY WRONG.
Let me explain this in simple terms.
The Strait of Hormuz transports about 20.3 MILLION barrels of oil and petroleum products every day.
At $73 per barrel, that’s roughly $1.5 BILLION worth of oil flowing through that route EACH DAY.
And that’s not counting liquefied natural gas (LNG).
This strait also transports about 290 MILLION cubic meters of LNG daily, meaning the total ENERGY value moving through that narrow passage is MUCH higher than the $1.5 billion figure.
Read that again.
20.3 million barrels per day. 290 million cubic meters of LNG.
And now, let’s add the next piece.
OPEC+ just met today and agreed to increase production by an additional 206,000 barrels per day starting in April.
That number sounds large until you compare it.
206,000 barrels per day is NOTHING compared to the 20.3 million barrels of oil moving through the Strait of Hormuz.
That single fact explains a lot.
Because even if OPEC tries to soothe the market, that additional supply is VERY small compared to the risks if the Strait of Hormuz is disrupted.
Now, connect the dots.
After tensions escalated between the US and Iran, the market viewed Hormuz as a real risk point.
Transport costs skyrocketed.
War insurance premiums started to rise.
The risk premium for oil began to be re-priced.
This is NOT normal.
It’s the market telling you that fears are increasing BEFORE a full-blown shock occurs.
And here’s why this matters so much.
If the Strait of Hormuz is blocked, delayed, mined, or even partially disrupted, the DAMAGE is NOT limited to oil.

• Oil prices spike
• Liquefied natural gas (LNG) prices spike
• Shipping costs soar
• Inflation expectations rise
• Yields come under pressure
• Liquidity dries up
  Then the domino effect begins.
  That’s how a regional conflict turns into a GLOBAL macro shock.
  And the scariest part is very simple.
  Markets often DO NOT wait until a complete closure.
  They start re-pricing based on the THREAT alone.
  So even if the Strait never fully closes, war premiums, shipping insurance, and supply risk premiums can impact everything simultaneously.
  This DOES NOT only affect oil traders.
  It impacts stocks.
  It impacts bonds.
  It impacts cryptocurrencies.
  It impacts every company dependent on transportation costs, energy, and finance.
  THIS IS A WARNING.
  Not because “something might happen.”
  Because the world’s most critical energy arteries are in a state of brutal conflict, and markets are still underestimating how quickly it could spread.