Crude oil prices react sharply to escalating tensions in the Middle East.
Crude oil prices react sharply to escalating tensions in the Middle East.

A Little Anarchy in the Oil Market

Well hello there Gothamites or should I say oil guzzlers. Yours truly the Clown Prince of Chaos is here to report on a little game of chicken being played in the Persian Gulf. Seems someone's thinking about turning Kharg Island into a very expensive bonfire. And you know what that means don't you? Chaos. Pure unadulterated chaos. As U.S. crude prices danced their way past $100 a barrel I couldn't help but smile. After all 'Introduce a little anarchy. Upset the established order and everything becomes chaos. I'm an agent of chaos.' And isn't that just beautiful?

Trump's Gambit: To Strike or Not to Strike

Ah the great Orange One is at it again isn't he? Threatening strikes drawing lines in the sand – it's all a bit like a bad comic book really. But here's the kicker: he's playing with oil that sweet black gold that makes the world go round. He is toying with striking Iran's oil infrastructure he said. But it seems like he will be holding back for now. The White House plans to announce as soon as this week that multiple countries have agreed to help escort oil tankers through the Strait U.S. officials told The Wall Street Journal. It's all a game a dance a carefully choreographed bit of madness. Talking about madness did you know that madness as you know is like gravity? All it needs is a little push. And a push is exactly what this is. Speaking of pushes have you seen NFL and CBS Eye Massive Deal Renewal More Money Than Ever Before? Now that's what I call a heist a real slice of chaos. And the question on everyone's lips: Will he strike or will he hold back? Only time and perhaps a well placed Joker card will tell.

The Strait of Hormuz: A Very Important Bottleneck

Now let's talk about this Strait of Hormuz. It's not exactly a laughing matter. Well maybe it is. Depends on your sense of humor. After all I have no respect for geopolitical stability or anything else for that matter. This narrow waterway it is responsible for about 20% of the world's oil supply passing through. And now it's basically a war zone. Tankers being attacked tensions rising – it's like a twisted version of bumper cars only with much higher stakes. The closure of the Strait of Hormuz has triggered the biggest oil supply disruption in history. And what happens when supply gets disrupted? Well prices go up of course. And that my friends is where the real fun begins.

The World's Oil Reserves: A Desperate Attempt at Sanity

So the world's decided to dip into its piggy bank huh? Releasing 400 million barrels of stockpiled oil. Oh the humanity. It is like they think they can control the madness. Well good luck with that. Even with the U.S. unleashing 172 million barrels from its Strategic Petroleum Reserve and other countries chipping in there's no guarantee it'll make a dent. As U.S. Energy Secretary Chris Wright said "There's no guarantees in wars at all." Well isn't that the truth? Sometimes the only sensible way to live in this world is without rules.

Retaliation: The Inevitable Punchline

Of course there's always the threat of retaliation. Natasha Kaneva from JPMorgan warns of "severe retaliation" by Iran in the Strait of Hormuz or against regional energy infrastructure. Because when you push someone they tend to push back. It's all part of the game. The question is who's going to laugh last? The world is in chaos and they have to respond. This just means that the oil price are going to jump even higher than before. And the question to all of you is are you happy with this or you gonna respond back?

The Punchline: Is It Worth It?

So here we are on the brink of something big something messy something utterly chaotic. Oil prices are soaring tensions are high and the world is holding its breath. Is it worth it? Does anyone really win in a game like this? I wouldn't know about it. But as I always say 'Why so serious?' Because at the end of the day it's all just a big joke isn't it? 'Madness is the emergency exit.' I mean where else are you going to go?


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