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President Trump initially indicated that a war with Iran would be fast and decisive. Now he says that this could take a while. Israeli Prime Minister Benjamin Netanyahu indicated the same on Sunday.
Investors are bracing for a stock market bloodbath when markets open on Monday for one simple reason: Iran has closed off vital shipping routes for global energy and targeted energy infrastructure belonging to Israel and other Middle Eastern countries. Access to affordable supplies and energy is about to be majorly constrained, which means that goods and services will be far more expensive. You were warned!
War is a theft from taxpayers and we will pay for this, not just in weaponry and debt, but also with skyrocking prices.
“This has definitely bigger ramifications than Venezuela,” Florian Weidinger, CIO at Santa Lucia Asset Management, told CNBC.
Venezuela currently produces an average of 800,000 barrels of crude oil per day whereas 13 million barrels of oil pass through the Straits of Hormuz per day, which accounts for 31% of the global market.