Strait Up! Will Iran Block the Oil Flow? D-O-Double-G Weighs In

Fo Shizzle My Nizzle What's the Haps?

Aight check it y'all. Snoop D O double G in the house droppin' knowledge on this Strait of Hormuz situation. Word on the street is things are gettin' hotter than a fresh blunt in July over in the Middle East. Israel hit Iran and now everyone's wonderin' if Tehran's gonna retaliate by messin' with the oil flow through this Strait of Hormuz. Now I ain't no geopolitical scientist but I know a thing or two about keeping things cool under pressure. Let's blaze through this shall we?

20 Million Barrels a Day? That's More Than My Chronic Collection!

This Strait of Hormuz man it's like the main vein for the world's oil supply. We talkin' about 20 million barrels a day passin' through that mug! That's nearly one fifth of all the oil shipped globally. Block that thing up and you got yourself a full blown energy crisis. Prices goin' sky high and everyone's gonna be singin' the blues. But hold up folks. Some smart cookies are saying it ain't that simple. Closing it might be harder than rolling a perfect joint in a hurricane ya dig?

No Net Benefit? Sounds Like a Bad Business Deal!

Ellen Wald from Transversal Consulting she's sayin' there's 'no net benefit' in Iran blockin' the strait. And she's right messing with the oil flow could backfire especially since Iran's own oil infrastructure hasn't been touched. Plus a major spike in oil prices? That's gonna upset China Iran's biggest oil customer. As I always say 'If you ain't got the money I ain't got the time.' And China's got the money so Iran better think twice.

China's Got Iran's Back (But Not *That* Back)

Anas Alhajji from Energy Outlook Advisors backs that up saying China won't want any disruption to the oil flow or price hikes. They'll bring their economic muscle to bear on Iran fo shizzle. China's the number one importer of Iranian oil scooping up over three quarters of their exports. They're also Iran's biggest trade partner. So as I always say “Real recognize real.” And China needs that oil so they're gonna keep things in check ya know?

Impossible? Maybe Maybe Not… But It's All Talk Right Now

This whole 'closing the Strait' thing has been a recurring threat like Dre teasing Detox for years. But it's never actually happened. Anas Alhajji points out that most of the strait is in Oman not Iran. And it's wide enough that closing it would be harder than teachin' my grandma how to Dougie. But some analysts are still sweatin' saying it could be a 'last resort' option if things get really heated between the US and Iran. Basically all bark and no bite...for now.

Extreme Times Call for Extreme Measures (But Hopefully Not)

Helima Croft from RBC Capital Markets thinks a full scale blockade is unlikely given the US Fifth Fleet's presence. But she also warns that Iran could still launch attacks on tankers or mine the strait. Amena Bakr from Kpler says '[Closing the strait] is kind of an extreme scenario although we are in an extreme situation.' So while it's a long shot we can't rule it out completely. Tensions are high and even a faint possibility can send oil prices soaring. Crude futures jumped after the Israeli strikes. Let's hope everyone takes a chill pill and finds a peaceful solution before things get too chronic feel me?