Hormuz Horror: Are We Headed for Another Galactic-Sized Oil Crisis?

Another Day Another Apocalypse...

Alright people listen up! Ripley here and I've seen things you wouldn't believe. Facehuggers chestbursters corporate greed... but this Strait of Hormuz situation? It's giving me serious déjà vu. Remember when the Company decided to cut corners on LV 426? Yeah well history doesn't just repeat itself it charges you exorbitant prices for fuel while doing it. Turns out according to the world's largest shipping association all shipowners are closely monitoring developments in the region and some have already paused transits in the Strait of Hormuz due to the deterioration of the security situation.

They're Coming Out of the Walls! They're Coming Out of the Straits!

So the U.S. decided to poke the bear—or in this case three major Iranian nuclear enrichment facilities. Real smooth move guys. Now Iran's all riled up talking about defending its sovereignty and all that jazz. "Before the US attack the impact on shipping patterns was limited," Bimco's Larsen said. "Now after the US attack we have indications that the number of ships passing is reducing. If we begin to see Iranian attacks on shipping it will most likely further reduce the number of ships transiting through the [Strait of Hormuz]," he added. I'm telling you it's just like the Nostromo all over again. We were supposed to be hauling ore not starting interstellar wars. Somebody wake me up when this is over.

20%? That's Gotta Hurt...

This Strait of Hormuz is apparently a big deal. Like '20% of global oil and petroleum product consumption' big. And '20% of global liquified natural gas' big. So if that gets shut down you can kiss your cheap gasoline goodbye. You think space travel is expensive? Try fueling up your Earth bound rust bucket with prices like that! Even the Nostromo would be jealous. 'Yet in the aftermath of the U.S. attacks on key nuclear sites Iran's parliament reportedly approved the closure of the waterway risking alienating its neighbors and trade partners.'

Standby for Panic!

S & P Global Commodity Insights says the pace at which tankers are entering the Strait of Hormuz has definitely slowed. Seems shippers are putting tankers and vessels on standby so they are waiting for an opportune moment to enter the Strait. Reminds me of waiting for the dropship to pick us up on LV 426. Except instead of aliens they're worried about well other aliens! Turns out suppliers of LNG in the Gulf have told lifters of LNG to wait before entering so as not to loiter in the Gulf keep vessels out of that region.

Precautionary Measures: Because Space is Scary and So is This Strait!

Japan's Nippon Yusen is asking ships to pause for a day or a couple of days when there is flexibility in the shipping schedule. It's a precautionary measure following the escalation of Isreal Iran tensions since June 13. You know I’ve dealt with worse but at least the Xenomorphs were upfront about their intentions. German container shipping firm Hapag Lloyd said it is continuing to sail through the Strait of Hormuz but the situation is unpredictable and could change within a matter of hours in which case 'our emergency and response plans which we maintain as part of our crisis management system come into effect,' a Hapag Lloyd spokesperson said.

Insurance: Because You're Gonna Need It

According to Xeneta container shipping activity in the Persian Gulf and upper Indian Ocean appears to be continuing as expected for now. 'All companies access the risk individually but the current situation requires them all to do so several times a day. Staying in close dialogue with national intelligence agencies and their own captains onboard the ships,' Sand told CNBC by email. Insurance costs meanwhile have probably been hiked again. Any final decision to close the waterway rests with the country's national security council and its possibility has raised the specter of higher energy prices and aggravated geopolitical tensions. Washington calling upon Beijing to prevent the strait's closure. Well good luck with that. Me? I'm just gonna grab my pulse rifle and wait for the dust to settle. Anyone need a ride?