Total Nightmare - Joe Blogs [View all]

The war in Iran is entering a dangerous new phase, and the global economy is starting to feel the impact.

Over the last 24 hours we’ve seen further attacks in the Strait of Hormuz, including ships being struck and new concerns about naval mines that could keep the world’s most important oil shipping lane effectively closed.

But the disruption is no longer limited to shipping.

Across the Middle East, oil production is being cut as attacks continue on infrastructure and energy facilities, forcing major producers such as Iraq, Saudi Arabia, the UAE and Kuwait to scale back output. Millions of barrels per day have already been removed from global supply, raising concerns about a prolonged energy shock.

At the same time, the economics of this war are becoming increasingly clear.

Iran is using relatively cheap drones and asymmetric tactics to disrupt shipping, infrastructure and regional stability, while the United States is being forced to deploy extremely expensive missile systems to intercept those threats. In the first two days alone, the US reportedly used $5.6 billion worth of missiles, and further funding of up to $50 billion may be required to sustain military operations.

This raises an important question:

Is the Iran conflict becoming an asymmetric nightmare for the United States and the global economy?

In this video I look at the latest developments in the Strait of Hormuz, the growing disruption to Middle Eastern oil production, and why this conflict could have far-reaching consequences for global energy markets.