Mark Gagnon

Commercial shipping insurers responded immediately.

According to early reports, Lloyd's of London and other major maritime insurers either suspended coverage for Gulf transit vessels or put like a war risk premium so high that transit became just

you know, unviable.

To put that into plain terms, basically in past incidents in the Strait of Hormuz, these insurance companies will put on war risk premiums that have increased tenfold within 48 hours.

So when your insurance costs more than the cargo is worth, you just can't sail.

It makes no sense.

If you have a billion dollars worth of cargo, but the insurance is 1.5 billion, you're

half a billion dollars.

So the reported effects, if sustained, would be staggering.

Global oil prices reportedly spiked dramatically.

I mean, I'd notice it was my car.

I mean, gas is insanely expensive.

Some early reports indicate levels not seen since the 1973 oil embargo.

Stock markets around the world are plunging.

Countries that depend heavily on Gulf oil imports, specifically Japan, South Korea, India, China, etc., face the prospect of severe energy shortages.

Reports suggest Japanese refineries have begun curtailing operations and South Korean petrochemical plants are scrambling for alternative supplies.

European natural gas prices surged as LNG, liquefied natural gas, shipments from Qatar, the world's largest LNG exporter,

whose vast majority of shipments transit through the Strait were disrupted.

Hey, we're going to take a break really quick because I need to talk to the fellas.

All right.