Heritage Foundation’s Chief Economist EJ Antoni speculates:
Well, I can imagine. The world price would be slightly lower, but we wouldn’t be insulated from a price shock exactly for the reason he identifies for why natural gas prices have fallen in the US: we lack sufficient facilities to export natural gas (as it’d have to be LNG).
I want to pose a different counterfactual. What if we’d maintained incentives for EV’s, maybe even expanded them more than we did. Then, we’d have a smaller effective price shock, smaller shock to consumer spending. It’s like Dr. Antoni never finished a course in international trade…
(Of course, avoiding the war entirely, and not allowing the Iranians to have a stranglehold on the Strait of Hormuz might have been even better).
Speaking of loony tunes ideas involving oil, the war-criminal-in-chief has now pledged to take over Iran’s oil and gas sector in the “not too distant future”. The guy seems fixated on taking other people’s oil; Venezuela, Canada, Greenland and Iran all have oil. Next, he’ll be after Australia’s coal.
A sad manifestation of white matter disease.
The war-criminal-in-chief says the war is over:
https://www.yahoo.com/news/politics/articles/trump-expects-sign-deal-iran-055500430.html
Nothing from Iran to confirm that a deal is in hand. Brent down 2 bucks at just over $88/bbl. Kalshi has opening Hormuz by September 1 at 48%, up from 34% yesterday.
SPCX IPO is up $30 odd. Lots of takers
Beirut now free fire zone.
No. US shales are running near capacity, and the scale of the outage, 7+ mbpd, is a lot compared to gross US oil production.