Former White House Energy Advisor Bob McNally commented on geopolitical tensions in the Middle East, highlighting Iran’s influence on the United States through potential threats to the Strait of Hormuz.
What happened: McNally emphasized the significant impact such actions could have on the President Joe Biden’s political future and fuel prices.
During an appearance on CNBC’s “Last Call” on Tuesday, McNally, a former energy adviser, stressed that Iran is aware of its strategic position to influence U.S. policy by threatening to close the Strait of Hormuz, a crucial point for global oil shipments.
“Our basic case is that Iran will still be cautious. It doesn’t want to get into a war with the United States of America because it knows it will lose.'” McNally said.
IRGC naval commander Alireza Tangsiri recently warned of closing the Strait of Hormuz in retaliation for the attack on his consulate in Syria. McNally explained that the message was, in fact, directed at President Biden, asking him to “rein Israel.”
“Iran knows that its only influence on Israel is actually on the United States. Why Iran Can Guarantee an Election Defeat for President Biden. Iran can drive pump prices to $6 or more… and Biden knows he can do it.”
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Because matter: The Middle East is experiencing rising tensions, with analysts such as Helima Croft warning of a “serious escalating cycle of twists and turns” if Iran retaliates, potentially leading to a wider regional conflict. This could have significant implications for oil markets.
Former US Secretary of Defense Marco Esper predicts that Iran will retaliate against Israel but will aim to avoid full-scale escalation. This measured response is expected to specifically target Israeli interests.
Amid these developments, Israel-related stocks and ETFs are facing a downturn, with investors wary of the escalation of the conflict. However, big tech companies like Check Point Software appear to be resilient.
Read next: Donald Trump says it would be a ‘great honor’ if he were jailed for violating gag order: ‘I will gladly become a modern-day Nelson Mandela’
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