What is the Strait of Hormuz and Why Does It Control Oil Prices?
By Explaining Economics Like You're Five
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🗺️ There's a stretch of water most people have never heard of — and it controls the price of almost everything you buy. The Strait of Hormuz sits between Iran and the UAE. At its narrowest point: just 21 miles wide. 🌊 Through it flows 20% of the world's oil supply and 20% of global liquefied natural gas — every single day, through shipping lanes just 2 miles across. That's not a system. That's a pressure point. And the people who understand it use it. 🛢️ When Iran threatens to close the strait — even with zero follow-through — oil traders immediately price in the fear. Prices jump. Oil companies hold margins longer on the way down than on the way up. And you end up paying for geopolitical anxiety at a gas station in Ohio. ⛽📈 This video breaks down exactly how the whole mechanism works — clearly, simply, and without the spin. #StraitOfHormuz #GlobalEconomy #ExplainedLikeYoureFive
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