Can someone please put this in terms that can be easily understood? The media doesn't seem to be communicating this domino effect - perhaps they don't fully know either. :-)Can someone explain in layman's terms why oil prices would increase because a US ship fired on an Iranian one?
Because they can. The price of oil can be raised for whatever reason the oil barons chose. If a camel sneezes - the price goes up.Can someone explain in layman's terms why oil prices would increase because a US ship fired on an Iranian one?
It's the futures markets where they speculate on the price of oil and other commodities and buy contracts months ahead. They make money when they have a contract and something happens that makes the price go up. Subsequently, they circulate rumors and overreact to news. Just like the rice shortage, they circulated rumors that there was a shortage but their wasn't one. Nervous people began buying rise and hording it which depleted the supply chain, prices went up and they made money.
Oil buyers and speculators panicked so tried to buy more oil fast in case of a future cut in production. They bid each other higher trying to get the oil for their interests.
war costs money .usa needs lots of money to protect the oil barrons comoddities.
ships in the gulf carry the oil
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