ALERT: A Global Energy Shock Is Coming!

Dire Consequences Await If the War Doesn’t End Soon

If the U.S.-Israel-Iran war does not end soon – either via ceasefire or regime change in Iran – we’re looking at a global energy shock unlike anything the world has ever seen.

Pray the war ends quickly.

As I write this (late afternoon on Monday, March 2^nd), the world is on the cusp of a massive global energy shock.

Despite all the misleading claims on social media regarding the Strait of Hormuz (i.e. Iran doesn’t have the capability of shutting the Strait of Hormuz), as long as the Iranian regime remains in power, they can significantly hinder the free flow of oil and LNG exports traveling through the Persian Gulf.

In fact, right now the Strait of Hormuz is effectively closed.

As reported in Lloyd’s List:

“THE STRAIT of Hormuz has effectively been closed, not by Iran, but by shipping itself.

Transits of all vessel types were down 81% on Sunday, March 1 compared to Sunday, February 22. Just over 1m dwt worth of traffic was tracked passing through the chokepoint on March 1. The average figure in January was 10.3m dwt.

Of the 23 transits recorded on March 1, a total of 21 were eastbound, that is away from the Middle East Gulf region.

Just one crude oil tanker transited the strait on Sunday, and no LNG carrier transits were recorded.”

Again, many people continue to parrot the idea Iran is incapable of shutting the Strait. They say, “The U.S. has bombed the Iranian Navy. They don’t have the ability to mine the waters or enforce a blockade.”

Correct. I’m not aware of any credible person who has claimed they have that ability.

Yet, I continue to hear “The Iranian Navy is no match for the U.S. Navy and its allies.” Here’s an example 👇

Again, that’s correct. But guess what?

The Houthi Navy is also too weak to completely choke the Red Sea. The Houthi Navy is also no match for the U.S. Navy and its allies. In fact, the Houthis don’t have any naval forces at all.

Nevertheless, this ragtag band of rebels with just a fraction of the resources available to a nation state such as Iran has managed to shut down the Suez Canal since November 2023. In December of that year, the United States announced Operation Prosperity Guardian. The goal? Neutralize the Houthi threat and make the Suez Canal freely navigable for international trade.

Joe Biden bombed the Houthis.

Donald Trump bombed the Houthis.

Both claimed victory over the Houthis. Yet almost two and a half years later, Suez Canal traffic is down 60% from where it was in 2022.

The Suez Canal was once one of the world’s most vital waterways. Prior to the Houthi attacks, approximately 12% of global trade traversed through the Suez Canal.

But with the Houthis harassing international shipping, most of those ships rerouted around the Cape of Good Hope.

However, when it comes to the Strait of Hormuz, there is no alternative route.

There’s only one way in and out of the Persian Gulf – the Strait of Hormuz.

Yes, land-based pipelines and roadways can carry some oil, but they don’t have the capacity to replace what flows through the Persian Gulf.

Since early Sunday morning, shipping traffic through the Strait of Hormuz has effectively stalled out. If this lasts for only a few days, it will quickly become a footnote in history.

If it persists for weeks or months, it will unleash a global energy shock the likes of which the world has never seen before.

The Strait of Hormuz Is Paralyzed

As Lloyd’s List stated, “The Strait of Hormuz has effectively been closed, not by Iran, but by shipping itself.”

Closure of the Strait of Hormuz doesn’t require an Iranian naval blockade or mining of the narrow waterway. All it takes is harassment of shipping, and no shipping company will want to take on the risk of traversing the Strait.

Already, we’ve seen mass cancellation of insurance policies for Persian Gulf cargo.

As Shanaka Anslem Perera so eloquently states in this X Post:

“The insurance industry pulled coverage for the entire Gulf. Without war risk insurance, no cargo can be financed, no vessel chartered, no commodity traded. The insurance cancellation is the blockade. The missiles are enforcement.”

And Iran is using missiles to enforce the closure… Yesterday, they attacked three ships 👇

Earlier today, they struck an oil tanker with two drones 👇

Now, as I’m writing this, Iran has announced they will attack any ship passing through the Strait 👇

As The Times of Israel reports:

“Iran’s Revolutionary Guards commander says that the Strait of Hormuz is closed and Iran is to set fire to any ship trying to pass, Iranian media reports.

The move comes after supreme leader Ayatollah Ali Khamenei was killed in an Israeli strike, and the closure threatens to choke a fifth of global oil flows and send crude prices sharply higher.”

As if that’s not bad enough, Iran has already attacked oil and natural gas infrastructure throughout the Middle East.

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Energy Infrastructure

Iran is not limiting its strikes to Israel, U.S. military bases, or Persian Gulf shipping. They’re also attacking energy infrastructure in Gulf nations.

Earlier today, Saudi Aramco’s Ras Tanura facility shut down. This means Saudi Arabia’s largest oil refinery is offline👇

As The Times of Israel reports:

“The Ras Tanura complex, on the kingdom’s Gulf coast, houses one of the Middle East’s largest refineries with a capacity of 550,000 barrels per day (bpd) and serves as a critical export terminal for Saudi crude.

It was shut as a precautionary measure, and the situation is under control, the source said.”

Even if it reopens, Iran can hit it again.

Also earlier today, QatarEnergy ceased production of liquefied natural gas (LNG) due to military attacks on its operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City 👇

As CNBC reports:

“Qatar said Monday it halted liquefied natural gas production due to attacks by Iran on two key operating facilities, as the Islamic Republic widened retaliatory strikes to target regional energy infrastructure of its Persian Gulf neighbors.

Qatar is one of the world’s largest providers of LNG. About 20% of global LNG exports come from the Gulf, primarily Qatar, and are shipped through the Strait of Hormuz, according to energy consulting firm Kpler.

European natural gas futures soared after the shutdown. U.K. natural gas spiked about 50%, while Dutch futures jumped more than 45%. Shares of U.S. LNG exporters Cheniere Energy and Venture Global jumped about 6% and more than 14%, respectively.”

Again, even if it reopens, Iran can hit it again.

What This Means…

Approximately 20% of global oil production passes through the Strait of Hormuz on a daily basis. Furthermore, that’s equivalent to 40% of the world’s oil exports.

If this war does not end soon – either through a ceasefire or regime change in Iran – the world will experience a global energy shock the likes of which we’ve never seen before.

Skyrocketing energy prices will hit household budgets, corporate profits, and put the brakes on the entire global economy.

My family will be topping off our gas tank every day until this conflict ends. Unfortunately, we don’t have the ability to store hundreds of gallons of gasoline. If we did, that’s what we would be doing.

Expect higher oil, gasoline, and natural gas prices as long as this conflict persists. Given the stock market bubble we’re in right now, and the weak state the global economy is already in, the current conflict in the Middle East could prove to be the catalyst for the greatest financial and economic crisis in history.

Make sure you have a deep pantry, and make sure to review our past articles on preparation:

“How to Prepare for the Great Reset”

“How to Prepare for a Bank Holiday”

“How to Prepare for Bank Runs”

Stay tuned. I’ll provide more updates as information comes in.

In the meantime, keep your eyes fixed on Jesus.

If you know Him, you have nothing to fear.

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