A Sticky Wicket Is Forming With China after Violent Tanker Attacks
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A Sticky Wicket Is Forming With China after Violent Tanker Attacks

by | published June 15th, 2019

The plot is thickening.

I wrote on Friday about the recent tanker attacks in the Strait of Hormuz, and the current geopolitical situation surrounding it.

I have been in constant contact with my global network, and they’ve been giving me up-to-date information about what’s going on. I began my conference calls at 2 in the morning on Friday concerning the rapidly deteriorating situation in the Persian Gulf.

As we approach the end of June, I will have more information on the latest events and risk implications that have been added to my upcoming meetings in London, and I intend on taking you with me.

To put things mildly, as the Brits say, there could be a sticky wicket forming.

Now, at the time of the attacks, I was mostly in touch with my contacts in Iran and Iraq.

But now the Chinese are getting in on the action…

A Beef with China Tightens

China is no stranger to making threats to the U.S., but following the tanker attacks, things are getting stickier.

The U.S. has placed the blame for the tanker attacks on Iran’s shoulders (which honestly hasn’t done much for U.S.-Iran relations), and China has now promised to side with Iran in this matter.

Over the last couple days, Chinese President Xi and Iranian President Rouhani met to confirm China’s willingness to develop ties between their two countries. Xi promised that they would stand by Iran no matter which direction the situation turns.

In other words, this could get ugly.

Now, I can’t say this move from China is particularly surprising; they have a track record of partnering with countries that aren’t terribly fond of the U.S.

And these days, that list is growing thanks to U.S. sanctions being implemented in China, Iran, Venezuela, and other exporting countries.

Back in September 2018 (on 9/11 no less), China partnered with Russia – yet another country with a beef with the U.S. – to hold the most extensive military exercises since the Cold War.

They may not have said anything outright, but this was a message received loud and clear.

There Are More Concerning Tensions Going On These Days…

All this comes amid major tensions between the U.S. and China following reinstatement of U.S. sanctions on $200 billion worth of Chinese goods.

Anyone who hasn’t been living under a rock will know about this situation – after all, the talking heads on TV have been panicking about this for some time now.

However, it’s the more subtle conflicts going on that have me concerned.

Longtime readers of Oil & Energy Investor will have read before about my analysis of the situation that’s been developing for years between the U.S. and the Chinese in the South China Sea.

This is a stretch of water that is one of the most highly disputed in the world, and the Chinese claim that U.S. Navy presence there is nothing more than trespassing.

Which means that the Chinese Navy has been acting more and more aggressively as the months and years go on and the U.S. is still there.

Just over the last few months, both sides have pushed each other’s buttons with aggressive sailing, bomber planes flying overhead, and not-so-subtle threats coming over the airwaves.

And with the tanker attack in the Strait of Hormuz, and China’s vow to side with Iran against the U.S., things could get even trickier in the South China Sea.

The Chinese already have a highly sophisticated missile in place in the area, and increased tensions could force them to use it, putting hundreds of U.S. Navy personnel at risk.

Far from a stalemate, things are escalating quickly.

Which is why the Pentagon needed to act fast when the Chinese first deployed their “Assassin’s Mace” missile.

Defense contractors like this one are hard at work developing a counter weapon, and they’ve certainly succeeded.

The proverbial material is about to hit the rotating oscillator, and I don’t intend on being hit with flying debris.

You shouldn’t either.

Sincerely,

Kent

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  1. William Hamstra
    June 15th, 2019 at 18:25 | #1

    Hello Kent : I was just barely five yrs old during the second world war ,living in Holland planes never seemed stop my father and others constantly had to hide from the enemy I remember it as it was yesterday im now eighty.
    War sucks the devastation uninmagimal this is not about right or wrong this is simply a power play,so sad that the entire world has to suffer to prove a point .

  2. Lee Mottern
    June 16th, 2019 at 14:07 | #2

    I too am Very concerned as well. As a retired All Source Intell Analyst for 36 years–My quick & dirty analysis mirrors your own.

    Best Regards,
    Lee M.

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