There is a legitimate threat that because of escalating tensions and war in the Middle East, namely concerning Israel and now Iran, after Israel bombed Iran’s consulate in Syria and Iran launched a wave of missiles and drones against Israel – there is now a very real possibility that oil and petroleum prices could spike, due to supply chain disruptions, embargos and sanctions.
The biggest reason for this is because roughly one-fifth (20%) of all the world’s oil shipments travel through the Strait of Hormuz – a choke point in the Persian Gulf this is occupied by Iran, the UAE, and Oman. Simply put, if tensions escalate, especially if Israel decides to retaliate with their own counterstrikes against Iran, and Israel gets help from U.S. allies directly, then Iran could quite possibly decide to close the strait, dealing a massive blow to Western oil imports, and thereby driving up prices significantly.
This is not a guarantee but a very strong possibility that has been getting a little of mainstream media press.
Nicholas Colas, co-founder of DataTrek Research, said in a note: “Crude prices are our chief concern, but we are a long way” from $125 a barrel — a level of West Texas Intermediate oil that “would almost certainly cause a recession if sustained,” said Colas, cited by MarketWatch. “Gasoline prices are the transmission mechanism between Mideast conflict and the US economy: when pump prices increase quickly, consumers must cut back on other spending.”
Furthermore, this worry comes at the same time the Biden administration has indicated that they will not refill the country’s strategic oil reserves, after being essentially emptied out.
Oil is used in practically everything, roughly 6,000 or so products to be specific. The bulk of it, of course, goes to gasoline and fuels for transportation and heat.
Therefore, if the Strait of Hormuz is closed, expect the prices of everything to rise dramatically.
Lena Petrova, CPA, provides more context in a video report:
AUTHOR COMMENTARY
This whole war and the tactics make no logical sense, and in my opinion is just more of the “open sesame” world stage spectacle going on. Do you not find it intriguing that, apparently, Israel, which has some of the best military gear and intelligence in the world, was left napping on October 7th and could not see an attack was brewing right underneath their noses; but when Iran struck back this past weekend (and notice how it happened on a weekend, and not during market trading hours during the workweek), the whole world knew about it and watched it all happen in real time? It’s a game, friends, it’s highly strategic scheming.
Continue in prayer, and watch in the same with thanksgiving;
Colossians 4:2
We shall see what comes of this, but what is going on is simply designed to bring the current world structure to its knees, by disrupting trade, by causing travel and transportation to be ratcheted down, and the cost of everything to keep going up; especially at a time when central banks are looking to cut interest rates collectively later this year, allowing for more cheaper money.
SEE: International Energy Agency Calls For ‘Car-Free Sundays’ And Other Ways To Reduce Oil Use
Nothing is ever as it seems, my friends, especially with concerning the government and the media.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
The WinePress needs your support! If God has laid it on your heart to want to contribute, please prayerfully consider donating to this ministry. If you cannot gift a monetary donation, then please donate your fervent prayers to keep this ministry going! Thank you and may God bless you.
That’s a typical thing that happens when there’s a war a-brewin, higher gas prices.
The war drums are banging and resonating throughout the land and the world. Get ready!
They’re already hiking. It went from $3,69 a gallon YESTERDAY (when I should’ve gotten gas) to today when I got gas it was $4.19, so that’s quite a hike for overnight. I will be so glad to be out of here.