Trump BREAKS DOWN as Canada JUST Issued a WARNING… Global Oil CRISIS Is About to Get WORSE!

Trump BREAKS DOWN as Canada JUST Issued a WARNING… Global Oil CRISIS Is About to Get WORSE! Global oil markets have just been thrown into chaos, and Canadians are already feeling it at the gas pump. The crisis began after U.S. and Israeli strikes in Iran killed Supreme Leader Ali Kam, setting off a chain reaction that has sent the energy world into panic. Iran responded with swift retaliation, shutting down the Strait of Hormuz, the strategic waterway that normally carries about 20% of the world’s oil exports. Analysts warn that this disruption could be twice as severe as any previous supply shock in history. The global economy is now bracing for the fallout. On Wednesday, March 11th, the International Energy Agency, the IEA, announced that all 32 member countries unanimously agreed to release 400 million barrels of oil from emergency reserves. This is the largest release in IEA history, more than double the 182.7 million barrels released in 2022 when Russia invaded Ukraine. IEA Executive Director Fati Bol stressed that the action aims to alleviate immediate market disruptions, but she cautioned: “The most important thing for the return of stable flows of oil and gas is the resumption of transit through the Strait of Hormuz.” Canada confirmed it would participate, though Natural Resources Canada officials said the exact amount would be determined by the end of the week. The United States will tap 172 million barrels from its Strategic Petroleum Reserve as part of the IEA effort. U.S. Energy Secretary Chris Wright said the release would begin next week and take roughly 120 days for delivery. Japan, which gets about 70% of its oil imports through the Strait, announced it would release roughly 80 million barrels from private and national reserves starting Monday. France will contribute 14.5 million barrels, with President Emmanuel Macron noting that the 400 million barrels represent only the equivalent of 20 days of exports normally flowing through the Strait. The Stark Reality Here’s the brutal truth: 400 million barrels only cover about four days of global consumption. The Strait of Hormuz remains essentially impassable. According to the IEA, export volumes of crude and refined products are at less than 10% of pre-conflict levels. That means roughly 15 million barrels of crude oil and 5 million barrels of other oil products are being blocked from global markets every single day. Analyst Rory Johnston of Commodity Context explained: “For every day that this continues, the world loses about 15 to 20 million barrels of production. That loss, primarily to Asian markets, is like an air pocket in global oil supply. When that air pocket lands, inventories will start drawing aggressively, and the physical market will force higher prices.” Oil prices have been on a roller coaster. Brent crude futures soared near $120 per barrel on March 9th before falling back. As of March 11th, Brent traded around $92 per barrel, up $20 for the month and roughly 23% above the pre-conflict $73 level. WTI crude is trading about 28% higher. Even after the IEA announcement, oil prices continued climbing on Wednesday: U.S. oil rose 5% to $88 per barrel, Brent crude up 5% to $92.50. Traders remain skeptical that the emergency release solves anything long-term. An IRGC spokesperson warned: “You will not be able to artificially lower the price of oil. Expect oil at $200 per barrel. The price of oil depends on regional security, and you are the main source of insecurity in the region.” The IRGC has further stated it will not allow a single liter of oil through the Strait of Hormuz, and any vessel linked to the United States, Israel, or their allies will be considered a legitimate target. The Military Escalation Iran has already begun laying mines in the Strait, according to U.S. intelligence sources. While the mining is not yet extensive, Iran is believed to possess around 6,000 naval mines, raising the stakes for shipping dramatically. Ben Emmens, Chief Investment Officer at Fed Watch Advisers, explained: “Iran’s success in laying mines in the Strait has taken the crisis into a new dimension. With a material military campaign shift, Iran’s chokehold on the Strait will intensify, potentially with more mines. That is why the IEA’s 400 million barrel release is viewed as a water pistol, not a bazooka.” On March 11th, three ships were hit by projectiles near the Strait, including a Thai-flagged bulk carrier, Mayuri Nari, 11 nautical miles north of Oman. Three crew members went missing. These ships had attempted to transit the Strait despite the risks, reportedly following President Trump’s advice to “show some guts.” Maritime security expert Christian Buger told Al Jazeera: “For the shipping industry right now, it’s impossible to pass through the Strait. Without strong signals that transit is feasible, we are facing a major shipping crisis that could last weeks or even months.”