Asking if Iran can still shut the Strait of Hormuz and what can be done to degrade that ability.
Joe
Daniel Yergin
Tanker traffic has virtually halted due to physical danger from drone attacks; 20% of world oil and LNG flow through Strait of Hormuz is currently blocked.
Questioning whether this supply disruption is different from past events that markets quickly moved past.
Joe
Daniel Yergin
Impact depends on duration: if one week, markets adjust due to oversupply and alternative pipelines; if longer, becomes nightmare scenario with broader infrastructure shutdowns.
Asking if Iran's lashing out at neighbors was expected in Yergin's calculus.
Joe
Daniel Yergin
Iran's attacks have changed regional dynamics, drawing UAE and Saudi Arabia into conflict; Iran seeks maximum damage to oil market and world economy including financial markets.
Asking if Iran itself needs oil to keep flowing through the straits.
Joe
Daniel Yergin
Iran is dependent on oil exports (1.5-2M barrels/day primarily to China); if they don't export, they run out of money.