Ryan Adams

Is that an ocean?

In the middle of the Persian Gulf.

And then there's an oil field down there.

Israel struck it, taking down some of the capacity of the Iranian oil field there.

And then as a result, we have seen a divergence in oil prices based off of where you are.

So Brent crude, which is the oil that predominantly comes out of the Persian Gulf, spiked from $102 to $112.

This is also what I left out is in response to this Israeli strike on Iranian oil facilities, there was an Iranian strike on Qatari oil facilities in response.

So Iran was like, you guys are going to strike us?

We're going to strike Qatar for some reason.

Okay.

We're just going to bring Qatar into the mix.

And so as a result, oil production, separate from how this rate of hormones is closed, oil production in the region is getting constrained just by people striking each other.

So that's causing price to spike.

Brent crude is just specifically the oil.

It's not exclusively this, but if you are looking at the Brent crude price, you are largely seeing the price of oil that comes out of the Middle East, out of the Persian Gulf.

This oil is consumed by Asia and the EU predominantly.

You also have WTI West Texas Intermediate.

That's kind of the North American oil market.

Typically, Brent and WTI, they trade around each other because oil markets are global.

If somebody can buy cheap oil and sell it at a higher price somewhere else, they will.