“ If the Strait of Hormuz were blocked, oil prices would spike quickly because about 20% of global supply moves through that narrow passage.
Even a short disruption could drive prices up 10–30% almost immediately, while a sustained blockage could push increases to 30–80% or more.
In a worst-case, prolonged closure, prices could potentially double due to panic buying, real supply shortages, and surging shipping and insurance costs. Markets often start pricing this in on credible threats alone, so moves can begin before any actual shutdown.
From a market standpoint, people typically position for rising oil by using oil-linked ETFs, energy stocks like ExxonMobil or Chevron, or more advanced tools like options and futures.
Secondary effects also matter: defense and shipping-related sectors may rise, while airlines and oil-import-heavy economies tend to fall.
The key is timing—markets move early, so the biggest gains usually come from anticipating how severe the disruption will be, not just reacting after it happens.
”
teh_herper on
Don’t worry a tweet is all it takes to dump the prices
kon--- on
Needs a renewables trading beach slide.
If that dumbass in the White House prices oil out, renewables will seize market share and laugh when oil tries to become relevant again.
3 Comments
“ If the Strait of Hormuz were blocked, oil prices would spike quickly because about 20% of global supply moves through that narrow passage.
Even a short disruption could drive prices up 10–30% almost immediately, while a sustained blockage could push increases to 30–80% or more.
In a worst-case, prolonged closure, prices could potentially double due to panic buying, real supply shortages, and surging shipping and insurance costs. Markets often start pricing this in on credible threats alone, so moves can begin before any actual shutdown.
From a market standpoint, people typically position for rising oil by using oil-linked ETFs, energy stocks like ExxonMobil or Chevron, or more advanced tools like options and futures.
Secondary effects also matter: defense and shipping-related sectors may rise, while airlines and oil-import-heavy economies tend to fall.
The key is timing—markets move early, so the biggest gains usually come from anticipating how severe the disruption will be, not just reacting after it happens.
”
Don’t worry a tweet is all it takes to dump the prices
Needs a renewables trading beach slide.
If that dumbass in the White House prices oil out, renewables will seize market share and laugh when oil tries to become relevant again.