In this video, we will discuss how the United States could make short-term profits if Iran shuts down the Strait of Hormuz, and why those gains may turn into long-term dangers. The Strait of Hormuz is a key route for nearly 20% of the world’s oil. If Iran blocks it, global oil supply would drop suddenly, causing prices to rise sharply. In the short term, the U.S. would benefit. American oil and gas companies would sell at much higher prices, earning billions. Energy stocks would surge, and global buyers would turn to the U.S. for oil and gas exports.
However, these short-term profits come with long-term risks. As oil prices stay high, inflation in the U.S. could rise, affecting gas prices, food, and transportation. A global recession could follow, which would reduce demand and harm American exports and jobs. Prolonged instability could also pull the U.S. into costly military involvement in the Middle East. In short, while the U.S. may gain financially in the first few weeks, the long-term effects of an oil crisis could be damaging for both the economy and global stability.
