Jerry Doyle

So it's not that difficult to see how just any of those types of mines would make passage difficult.

I mean, that is true.

It is a maritime law.

Freedom of navigation sort of underpins a lot of global commerce.

What's happening in the Strait of Hormuz sort of cuts against that.

Iran has reportedly charged fees up to $2 million for a tanker or cargo ship to pass through.

That also cuts against freedom of navigation and freedom of transit.

And so, yeah, it's not legal what Iran is doing.

It doesn't own the entire strait or all the waters of it.

And ships, commercial ships should be able to pass through without any trouble.

But because of the war, they're not.

Well, for Iran, it means that they're actually making more money per day than they were before the war because—

because oil prices have have gone up significantly uh they are making something by our estimates about 139 million dollars a day uh in March which is up by you know 20 million or so from what they were making in February before the war they've been able to get roughly 1.6 million barrels per day out um which is on par with what they were doing before the war so

Because they're allowing their own oil out and they are taking the money for it and selling it mostly in China, that allows them to continue to profit from their oil even though nobody else is able to get theirs out.

Now, for the rest of the world, the picture is not as great.

20% of the world's oil passes through the Strait of Hormuz.

Iran's oil is just a small fraction of that.

So they've been able to get their oil out, but it is coming nowhere near making up the shortfall of having the entire Strait closed.

And so...

As the global economy tries to absorb the shock of missing that daily supply of oil, you're starting to see it leak into all aspects or many different aspects of the economy.