Episode 137 - The Oil Crisis After the Closure of the Strait of Hormuz
Simon Dixon comes to explain what is happening with the unfolding financial crisis following the closure of the Strait of Hormuz.
Removing approximately 20 million barrels of oil per day, this is the biggest oil supply shock of our lifetime—impacting the market 10 times more than the start of the Russia-Ukraine conflict.
In this vital interview, Simon breaks down the geopolitical chess moves happening behind the scenes, explaining how the U.S. and Russia are emerging as the massive net beneficiaries of this crisis, while Europe, the UK, and Asia face severely depleted reserves and skyrocketing energy costs.
Simon also unpacks how financial institutions are using the derivatives market to temporarily suppress oil prices and warns that if the strait remains closed for an extended period, the world could face a severe global recession and a financial crisis akin to 2008, leading to massive money printing.
What You Should Do:
The average consumer is facing soaring gas prices and a potential jump in consumer goods inflation. To prepare for the turbulent months ahead, Simon explains exactly what you should do:
Remember that Cash is King:
Ensure you have 3 to 6 months of cash flow saved for your normal needs.
Don't Panic Buy:
Oil prices will likely crash back down the moment the strait reopens. Avoid stocking up on expensive supplies at the absolute top of the market unless you are preparing for a worst-case disaster scenario.
Build Local Communities:
Focus on your local supply chains. Get to know your neighbors and local farmers, and look into bulk-buying as a community to keep costs down.
Follow Simon Dixon:
Website: simondixon.com (For deep dives and AI-summarized insights)
Host: Sulaiman Ahmed https://www.youtube.com/@SulaimanAhmedX
Follow on X: https://x.com/ShaykhSulaiman
Disclaimer:
The information and overarching opinions shared in this content are for informational purposes and do not constitute financial or investment advice. The views expressed represent personal beliefs regarding markets that are incredibly unpredictable. You should not attempt to trade in these markets unless you are using capital that you can afford to lose. Always consult with a qualified financial advisor or your pension fund manager before making any investment decisions or adjusting your market exposure.