00:00:38.660Okay, then, Rob, unless if you're going to translate it to us, we can't go to it, Rob, so I appreciate your effort.
00:00:45.000Threatened Monday to attack any ship crossing the Strait of Hormuz in a move that could choke about a fifth of global oil supplies that will send oil prices soaring.
00:00:57.960If anyone tries to pass, the heroes of the Revolutionary Guard and the regular Navy will set those ships ablaze.
00:01:05.000Ibrahim Jabari, a senior advisor, the Guard's commander-in-chief, said in remarks carried by state media,
00:01:10.920The Waterway is the world's most important oil route connecting the Gulf, biggest oil producers like Saudi Arabia, Iraq, Iran, Qatar, UAE.
00:01:21.980One way for Iran to block it is to lay mines, but there hasn't been any such moves so far.
00:01:29.580The reason why this matters so much is because of one country, which we're going to get to.
00:01:35.980So, China's the biggest buyer of crude oil from Iran, 80% to 90% of it, if they shut down Strait of Hormuz, this is 20 million barrels a day, 1.2, 1.3 billion dollars a day, 20% of the world's oil supply.
00:01:51.940Jeff, how concerned are you about this, or is this just a bunch of tough talk?
00:01:55.760No, there's definitely a reason to be concerned, but you've got to realize this is Iran's only weapon.
00:02:00.840The only thing they have left is the price of oil and the leverage that they have over China.
00:02:06.660No, drones are a little bit of a nuisance annoyance here, but what they really have, the only pressure point that they can really use is the Strait of Hormuz.
00:02:16.100Close the gap, close the seaway, send oil prices higher, press China on, you know, you've got to help us out here, man.
00:02:29.560It's really the only thing that they have.
00:02:32.020And the Trump administration knew that, which is why Israel went after the regime.
00:02:37.900The Trump administration went after Iranian capabilities to do this.
00:02:41.800That's why Trump keeps talking about, you know, we sent their navy to the bottom of the sea.
00:02:45.620That's why there was news earlier, just, I mean, we were just talking about this, it just broke.
00:02:50.140Apparently something off of Sri Lanka sunk an Iranian warship that was over in Sri Lanka.
00:02:55.360That is another, it's another part of the Trump administration's strategy to counter the only leverage that the Iranians have.
00:03:02.180It's, your threat is to get the price of oil to go up by closing the Strait of Hormuz.
00:03:07.240We're going to make sure that you can't do that.
00:03:09.240So the U.S., the entire U.S. war effort, or the vast majority of it right now, is to counter that one threat because that's really the only threat the Iranians have.
00:03:15.940Yeah, and this is the story we were talking about earlier.
00:03:17.840U.S. submarine sinks Iranian warship off Sri Lanka, killing at least 80 and leaving dozens more injured.
00:03:25.660Well, this is the coast of India, literally one quarter of the world away.
00:03:31.280You have to go from the Middle East, all, as people look at me, all over here to India, and then you go off the side of India, and there you have it.
00:03:40.960Well, what it matters, it means, why would an Iranian...
00:03:43.240Can you pull up the map, Rob, just to look at the map of what this location would be exactly, to see strategically what intentions are?
00:03:49.380Why would an Iranian warship be off the coast of Sri Lanka to escort oil tankers, to be a patrol in the area, to be there at a certain time?
00:03:58.280Now, if you zoom out on this, you're going to see there's a channel there at India.
00:05:22.340They're only playing with China and others.
00:05:24.74060% of the natural gas that goes to Europe comes from us, the United States.
00:05:29.280So it's become a much more balanced energy market because now that becomes sort of your sixth fleet.
00:05:35.200If you think of the five branches of the military, your sixth fleet is energy independence and ability to be an exporter on the world stage.
00:05:42.840So they're saying this is the first time a U.S. submarine shot down an enemy's ship since World War II.
00:05:50.980So this hasn't happened for quite some time.
00:05:54.540And what it shows is that, again, this is a message.
00:05:58.300We are taking this threat very seriously.
00:06:00.340So the reason why oil prices are down is because the oil market is saying the U.S. is going to do everything it can to make sure that the worst case scenario doesn't happen.
00:06:31.660In fact, yesterday in the Indian Ocean, and we'll play it on the screen there, an American submarine sunk an Iranian warship that thought it was safe in international waters.
00:07:28.400So they've put the line in the sand, so to speak.
00:07:31.560But I think it's really interesting, and I think about this poker chip that he's trying to play here, because as the point that you made, Patrick, China is the one that suffers the most if this oil doesn't flow to them.
00:07:44.060So the U.S. is sort of insulated because we're the number one producer of oil in the world.
00:07:48.940Iran, the output is doubled down there, and we could almost just, hey, let that pain be felt by China, and maybe they could influence Iran a little bit in some of these negotiations.
00:07:58.720But if we're going to open up the straits and keep the oil flowing and China doesn't suffer, then whose side are they really on?
00:08:06.000I think also, you know, to the point that he said we're not going to allow them to slow this down, it also shows why there's a war in Iran in the first place, because all they constantly do is threaten global markets.
00:08:17.420And Jeff and I were talking earlier before we came up here, where Trump wants to make a deal.
00:08:21.900Most of the Middle East, Saudi Arabia, the UAE, they just want to make a deal.
00:10:34.480So I'd like to know how and how long is Iran going to keep the strait closed, given what we're seeing with American air superiority right now and what has been cleared out and what's happened to the Navy.
00:10:48.280Exactly what are you using to keep the strait closed?