Jon Lovett

Okay, guys.

So that's happening.

Also, I mean, the reason that prices are spiking because of this is like a fifth of the world's oil goes through the straight.

But also the producers had to stop down.

They had to like the Rockies shut off 70% of their production.

Yeah, also, and all of this is like, these are not one-to-one.

Like, it's not like the price of oil is not set by the exact amount coming in and out of the Strait of Hormuz.

It's a prediction of what oil will cost.

It is based on people's expectations of the availability, of the instability, of...

of like what the future might look like.

And a world in which we're in a endless kind of quiet on again, off again conflict in the Middle East is not one in which people have confidence in the stability of the system, all of which drives prices, not just for oil, but for other things like fertilizer and other things up over time.

you know, fuel costs for, uh, companies transporting food.

So food prices get hit.

I mean, this is, and as we have seen with the tariffs, these things take a while to like fully work through the system.

It's not just like the price of gas this week.

Um, when you have supply shocks like that, like there's one economist, um, it was quite, I think in a time story that said this, this administration is just a series of horrible supply shocks, meaning the tariffs, immigration, labor supply for immigration, and now, uh, oil.

just just up the economy good stuff and we are getting you know it is it is march the election is in november but you know you start having economic effects that pile up on each other and we still have inflation anyway people are struggling with higher prices before this you throw this on to the whole pile and it's i don't know they're they're betting on a lot they're bent on a lot or they just don't know what the they're doing or probably a little bit of both

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