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The Goal of the Iran Blockade
From robinjbrooks.substack.com
The US has announced a naval blockade of Iran, something I’ve been advocating for almost a month. An embargo of Iranian oil, which is what a blockade is, has pros and cons as I discussed in a recent post, but - at this point - the pros materially outweigh the cons. There’s two reasons why I think this. First, Iran is a relatively small supplier of oil to global markets, which means that - taking it offline - shouldn’t push the front-month futures contract for Brent much above $120, which is well-trodden territory at this point that global markets can handle. Second, much like Russia, Iran runs on the cash ... (full story)