Iran’s Leader Says Hormuz Should Stay Closed. It could take weeks to reopen.

Key points:

• Iran’s Supreme Leader seeks to keep the Strait of Hormuz closed, impacting 20 million barrels of daily oil supply.

• The Strait’s closure has driven oil prices 30% higher, with analysts predicting $150 per barrel if it persists.

• Reopening the Strait of Hormuz is a complex task, potentially taking months due to mines and layered threats.

The Strait of Hormuz is becoming the single most important choke point in the global economy right now.

Iran’s Supreme Leader Mojtaba Khamenei said he wants the strait to stay closed to “pressure the enemy.”

That’s a massive escalation because this 22-mile waterway normally moves about 20 million barrels of oil per day... roughly 20% of global supply (see my previous post)

With the strait effectively shut, oil prices have already jumped 30%. If it stays closed for weeks, analysts think oil could spike to $150 per barrel, which historically is recession territory for the global economy.

And reopening it isn’t simple.

Iran doesn’t need a traditional navy to block the passage. Mines, drones, missiles, and small attack boats create what military analysts call a “stack of threats” from the seabed to the sky. Even the U.S. military could take weeks or months to fully secure the route, especially if mines have been deployed.

That’s why the fastest solution isn’t military... it’s diplomatic. A cease-fire would allow mine-clearing operations and reopen shipping much faster.

Again, fear could be entering the market soon. That is opportunity for us.

Remember to keep your wits about you-- this is when investing gets fun!