Monday morning greeted me with a 34 cents-a-gallon increase in gasoline prices. All gave some. Most gave a few pennies a gallon. Some gave all.
NBC told viewers, “Iran shuts down Strait of Hormuz, oil, and gas prices rise.”
Not so fast, my friend. Insurers in London shut the oil tankers down by informing their owners that policies would be suspended during the duration of the war. Insuring the tankers became high risk, low reward. That is how insurance works. Insurers take the risk and are rewarded with your premiums as well as the money they make from investing those premiums.
The federal government subsidizes American health insurers through Obamacare. Democrats game their voters all the time. In his 2008 campaign, Obama blasted health insurers as greedy and vowed to punish them.
Obamacare then made everyone buy health insurance and subsidized health insurers. This year’s subsidies will reach $138 billion. A good $1 trillion of our national debt was caused by Obama lying that you can keep your doctor.
Republicans lied when they promised to end Obamacare. Once created, welfare programs never end.
But in this war, money talks and the London insurers believed that one incident could bankrupt them.
The London P&I Club, which stands for Protection and Indemnity, informed the shipping industry of is decision. Coverage includes financial protection for:
- Crew injury, illness, or death (and related claims)
- Cargo loss, damage, or short delivery
- Pollution (e.g., oil spills and environmental cleanup)
- Collision damage to other vessels or property
- Wreck removal
- Fines and legal defense costs
London insures 90% of the shippers.
Saudi Arabia, which sides with the USA (and by default, Israel), has to sit on it oil for now. Given that it is second only to the USA in oil production, currently 10 million barrels per day (USA’s is 13 million bpd). That is a lot of oil to sit on. That the Crown Prince is willing to absorb the expense now shows MBS is the ally that Keir Starmer, Emmanuel Macron and the rest of NATO should be.
5% to 10% of Europe’s oil comes through that Strait. Companies still willing to cover the tankers have increased premiums, which helps create a situation in which the Middle East is unable to capitalize on rising oil prices.
Oil supertanker costs in the Middle East climbed to their highest level on record as conflict between the U.S. and Iran disrupts shipping through the strategically vital Strait of Hormuz.
Major marine war risk providers have started to scrap cover for vessels operating in the Persian Gulf as the fallout from a sudden security shock hobbles key shipping routes in the region.
The benchmark freight rate for Very Large Crude Carriers (VLCCs)—used to ship 2 million barrels of oil from the Middle East to China—hit an all-time high of $423,736 per day on Monday, data from LSEG showed. That marked an increase of more than 94% from Friday’s close.
Alongside a significant jump in oil and gas prices, the stratospheric rise in the cost of hauling crude oil follows the U.S. and Israeli attacks on Iran over the weekend. The expanding conflict has resulted in the effective halt of shipping traffic through the Strait of Hormuz—one of the world’s most important oil choke points, located in the gulf between Oman and Iran.
The upside is Red China is in a bind because just a while ago 20% of its oil came from Iran and Venezuela.
Maybe if our Fake Allies in NATO are nice to him, Trump will send them some Venezuelan oil. It’s a little thicker to refine but Trump will give them a nice frenemies and Democrat families discount.
Now for a few other thoughts on Iran:
ITEM 1: Trump promised Operation Epic Fury will be short and sweet.
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If he delivers, 76% approval awaits him.
ITEM 2: Amit Segal tweeted, “Israel attacked the council members while they were counting the ballots to choose the supreme leader of Iran.”
I saw the aftermath of the bombing. Mama Mia, that’s a spicy meatball!
The joke on Twitter is black smoke means no decision was reached on the next Supreme Leader. Diana Ross is ineligible because she retired from the Supremes 56 years ago.
ITEM 3: The New York Post tweeted, “Ayatollah Khamenei’s oldest son elected to Supreme Leader to replace his dad.”
Is it nepotism or punishment?
ITEM 4: An intelligence blog reported, “Israel spent years hacking Tehran’s traffic cameras and penetrating mobile phone networks to monitor the movements of Iran’s Supreme Leader Ali Khamenei and his security detail ahead of his assassination, the Financial Times reported, citing multiple current and former Israeli intelligence officials and other people familiar with the operation.”
The ayatollah may have had a beard and snowy hair, but Mossad is the real Santa Claus. It sees you when you’re sleeping; knows when you run a red light.
ITEM 5: Senator Mark Warner of Virginia said, “There was no imminent threat to the United States by the Iranians. There was a threat to Israel. If we equate a threat to Israel as the equivalent of an imminent threat to the U.S., then we are in uncharted territory.”
On February 24, he said, “Supporting Ukraine is not just the right thing to do morally. It is also squarely in America’s national security interest. The Ukrainians are fighting on the front lines of freedom, and in the process, they are delivering a significant strategic setback to Russia’s military for years to come.”
If only Israel had hired Hunter Biden when Joe was president, Democrats would support Israel.
Nyah. The party that cries Nazi the most hates Jews.
ITEM 6: Rod Blagojevich reported, “In times of war you find out who your REAL FRIENDS are. Milorad Dodik, the Serb leader of the Republic of Srpska, didn’t hesitate to declare his full support for the U.S. now that we are at war with the terrorist Iranian regime. Dodik is all in with the U.S. despite the fact that the Iranians influenced Bosnian Federation continues to persecute him so they can push the Serb Christian minority out of Bosnia to achieve their goal of creating a unitary Muslim state in Europe.”
Need I tell you that Rod Blagojevich’s parents were Serbian?
Need I also tell you, he is absolutely right?
ITEM 7: Our favorite president tweeted:
The United States Munitions Stockpiles have, at the medium and upper medium grade, never been higher or better. As was stated to me today, we have a virtually unlimited supply of these weapons. Wars can be fought “forever,” and very successfully, using just these supplies (which are better than other countries finest arms!).
At the highest end, we have a good supply, but are not where we want to be. Much additional high grade weaponry is stored for us in outlying countries. Sleepy Joe Biden spent all of his time, and our Country’s money, GIVING everything to P.T. Barnum (Zelenskyy!) of Ukraine—Hundreds of Billions of Dollars worth—And, while he gave so much of the super high end away (FREE!), he didn’t bother to replace it.
Fortunately, I rebuilt the military in my first term, and continue to do so. The United States is stocked, and ready to WIN, BIG!!! Thank you for your attention to this matter. President DONALD J. TRUMP
I wish he’d stop Biden “Sleepy Joe” because that throws shade on Edgar Buchanan’s wonderful portrayal of Uncle Joe Carson on Petticoat Junction.
ITEM 8: Trump cut off all trade with Spain after its new communist prime minister refused to let the USA use in the the Iran War military bases we built in Spain in 1953.
No sweat. Portugal is cool with Operation Epic Fury.
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This article first appeared on Don Surber’s Substack. Reprinted here with permission.
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