I dearly hope the Iranians haven't been reading my blogs. Because a while back on this very site I warned that if Iran decided to block the Straight of Hormuz in the Persian Gulf, they'd throw the world's oil markets into turmoil. We'll, guess what? That's exactly what Iran has threatened to do, and this week the US has dispatched their navy to make sure this vital energy channel stays clear.
15.5 million barrels of oil go through Hormuz every day and that's nearly a third of all the oil consumed on the planet.
A grim prediction that I hope wouldn't come true. But it has. And because of all this international sabre rattling, the oil speculators are bound to start buying up crude futures in the hope of some opportunistic profit from potential future shortages. All this shows just how vulnerable the oil market is to the ...
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