It’s the world’s most important oil chokepoint.
The health of the world economy depends on the flow of oil through that passage.
The Strait of Hormuz separates Iran from the Arabian Peninsula. It’s a trading lifeline…
It’s the ONLY passageway from the oil-rich gulf to the Indian Ocean for maritime traffic.
All that oil has to come through one tiny channel … only about 30 miles wide.
Any disruption in the Straits would impact the flow of oil, and set global economies on the edge.
Right now, the world is on high alert…
Hamas infiltrated from Gaza into Israel on October 7 and massacred 1,400 Israelis.
Iran’s Foreign Minister warned at the United Nations that if Israel’s retaliation against Hamas terrorists in Gaza doesn’t end, then the United States will “not be spared from this fire.”
The U.S. now has two strike forces in the Mediterranean, the USS Gerald R. Ford and the USS Dwight D. Eisenhower to deter Iran from getting involved.
It wouldn’t take much to see oil prices soar to more than $200 per barrel.
Geopolitical risks wasn’t the reason I’ve been recommending oil for the past one and a half years.
I have no more insight into the future than you do.
But I do know that when a major world event happens, coupled with a dislocation in the oil market, prices could move higher faster than anyone thought.
Supply vs. Demand
Right now, the oil market is dislocated … demand has been increasing while supply is lagging.
We’ve seen oil production cuts by Saudi Arabia and Russia reduce the global oil flow.
The high demand is outpacing the supply mostly due to developing countries modernizing.
And the longer the Biden administration pushes the green energy initiative the worse it will get for us.
Bottom line…
It’s Go Time
This is what it comes down to…
- Global demand for crude will continue to grow.
- Supply will continue to lag well behind.
- And conflict in the Middle East will likely get worse before it gets better.
Here’s what it all adds up to: Oil prices are likely to keep heading higher.
In fact, based on my research here … it’s possible that oil prices could be 1,000% higher in near term.
And with winter coming … demand for heating oil and natural gas could push prices past anything we’ve seen before.
Based on my research — ALL of this is more than likely to happen.
And you get to choose whether you’re a part of it, or not.
So here’s what you can do:
If you’re still on the fence: Watch this interview I did with one of the top physicists in business.
Mark Mills is my go-to person when it comes to getting the real facts on fossil fuels and green energy.
And we spoke about why the simple math points to higher oil prices. What he shared with me knocked my socks off.
(Or click here to read the transcript.)
If you’re ready to make money on the oil bull market: Get positioned in a small oil and gas company now — before crude prices really take off.
Regards,
Charles Mizrahi
Founder, Alpha Investor