Watch It Now: Kent Discusses a High-Stakes Game in Iranian Oil
Yesterday, Kent sat down with Charles Payne at Fox Business Network to discuss today's biggest drama in the oil and energy markets today – Iran.
The interview, which I think you'll definitely want to watch below, highlights an important point that Kent has addressed numerous times regarding this ongoing period of increased volatility in crude prices.
That is: Geopolitical events are "the great outlier" in terms of influencing energy prices.
Simply put, Iran's unpredictability could have profound impacts on costs in either direction, depending on how the current battle between the producer and its European customers unfolds.
Tensions over Iran's nuclear enrichment program have spurred its European customers in Brussels to threaten boycotts of the Middle Eastern producer's crude. In response, Iran has threatened to shut down the Strait of Hormuz, a strategic waterway through which at least 18% of daily oil trade flows.
In a matter of hours of the Strait being shut down, prices would increase anywhere from $25 to $30 a barrel. If the Strait were shut down right now, after 72 hours, Kent foresees oil prices spiking to $150 very quickly, and rising much faster from there. From there, prices could climb to $180… even $200.
