by Michael Snyder,The Economic Collapse Blog:
There is no way to get around it. We are facing a major global economic disruption, and the longer this war goes on the worse it will get. As I have reminded my readers on numerous occasions, our entire way of life is predicated on cheap energy, and the Middle East is the most important energy producing region in the entire world. Traffic through the Strait of Hormuzhas been paralyzed, and energy infrastructure has been under attack by both sides. In fact, this morning Tehran was“covered in thick black clouds of smoke”after a refinery and multiple oil depots were destroyed…
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Even if traffic through the Strait of Hormuz was restored tomorrow, and that is not going to happen, the damage that has been done to energy infrastructure throughout the Middle East would take many months to repair.
It would be difficult for me to overstate the severity of the disruption that we are currently witnessing.
In neighboring Iraq, oil production has already fallenby 70 percentsince the start of the war…
Oil production in Iraq has fallen by 70% since the war broke out, according to Reuters. The country is producing about 1.3 million barrels per day now, down from about 4.3 million before the war. Kuwait, another oil-rich Gulf state, has also slashed its oil production.
Unfortunately, production is also way down in Saudi Arabia, Qatar and other nations in the region.
Most people living in the western world have no idea what this is going to mean.
The average price of a gallon of gasoline in the United States has soared over the past 10 days, but this isjust the beginning…
Source: SGT Report
