IF 🇮🇷IRAN CLOSES THE STRAIT OF HORMUZ, THIS IS NOT JUST AN OIL CRISIS; IT IS A GLOBAL LIQUIDITY CRISIS. Several experts think that the Strait of Hormuz will be disrupted. That single route moves around 20 million barrels of oil per day and massive LNG volumes on top of that. At current prices, that’s well over $1 billion of energy flowing through one narrow waterway every single day. Now compare that to OPEC+. OPEC+ is a group of major oil producing countries that coordinate how much oil they produce to influence prices and stabilize markets. They just agreed to increase output by about 200,000 barrels per day. On paper, that sounds meaningful. But when you compare it to the nearly 20 million barrels per day that pass through Hormuz, that increase is extremely small. In simple terms, if Hormuz faces disruption, the extra oil OPEC is adding would not be enough to replace what could be at risk. And markets know it. Shipping rates are rising. Insurance premiums are rising. Oil volatility is rising. That is pricing in risk before any actual closure happens. Here’s the part most people are missing: The market does not wait for a full shutdown. It reprices on probability. Even a temporary disruption can: ...