Funniest content on all Lemmygrad
The US keeps shooting itself in the foot. Every shot is higher up than the next.
Iran blocking the strait won't have any major consequences for America in the long term though. For one, Iran is letting oil through to other countries, meaning oil prices aren't as high as they could be. The US also has its own supply of oil. The cucks of the empire though, well they have been properly cucked and I couldn't be happier
I imagine the main consequence is going to be complete collapse of faith in the US being able to protect their vassals. The Gulf states invested incredible amounts of money in the US, they allowed Americans to put their bases there, and expected American protection in return. Now they're seeing that the US can't even protect themselves, let alone provide protection to them. And the rest of the world now sees it too. Europeans were already chaffing, and now the US dumped another huge turd on them. Korea and Japan are likely in a panic now. Philippines are already trying to cozy up to China.
On top of that, Iran now demands that oil going through the strait is settled in yuan. This is a direct attack on the petrodollar which builds on Russia selling oil outside the dollar system already. At this point the whole status of the dollar as a reserve currency is coming under threat.
It's also not clear that prices will stay where they are going forward. Right now it's being amortized by the release of the reserves and the fact that tankers that topped up before the strait was closed are still on the way. Once that dries up, we'll see what the real effect is. And Iran could just choose to prioritize friendly states while continuing to choke off access to the vassals in Europe.
If G7 economies start tanking as a result of that, they're necessarily going to drag US down with them as well. Even the current shock is already impactful for Americans.
The US has its own oil supply, but that won't prevent rising prices. If you are an oil company in Texas and you can choose between selling domestically for 100$ a barrel or internationally for 200$ a barrel, of course you're preferably going to sell to the foreign market. The domestic prices will keep pace until the total cost of shipping the oil abroad exceeds the extra money to be made there
And that isn't necessarily bad for America. Oil companies are going to make tonnes of money. Only the working class that has been forced to rely on cars will suffer from higher oil prices. So long as the money isn't hurt, America isn't hurt. Who cares about the pesky peasants?
won't have any major consequences for America in the long term though.
I'm not sure that's entirely true. The US imports a critical amount of its fertilizer inputs, primarily from the Persian Gulf.
Sounds like a clarion call for the people to take over multi-national oil companies operating in the countries.
Accelerate de-dollarization.
