US, Iran stalemate could ROCK oil markets, expert warns
. WE'LL SEE HOW THIS UNFOLDS. JOHN YOO, GOOD TO HAVE YOU WITH. US. THANK YOU, SIR. DIPLOMACY APPEARS TO HAVE COME. TO A STANDSTILL IN THE MIDEAST. IRAN IS CONTINUING TO WIELD. POWER IN THE STRAIT OF HORMUZ. KEEPING THE PRESSURE ON OIL. MARKETS. LET'S BRING IN BRANT SADLER, A. RETIRED NAVY CAPTAIN AND FORMER. PENTAGON OFFICIAL. THANKS FOR BEING HERE. GOOD TO SEE YOU. THIS ALSO NOW COMPLICATING. MATTERS POTENTIALLY. STARS AND STRIPES MILITARY PAPER. REPORTS THIS MORNING THAT THE.
USS ABRAHAM LINCOLN FAMILIES. PERRY FAMILIES OF THE NAVY. SAILORS ABOARD ARE PRESSING. LEADERS NOW ABOUT SAILORS MENTAL. HEALTH ABOARD THE SHIP. I UNDERSTAND THEY'VE BEEN. DEPLOYED SINCE NOVEMBER WHICH IS. NINE MONTHS. EIGHT, NINE MONTHS. >> YES. I'M VERY FAMILIAR WITH STARS AND. STRIPES. FAMILIAR WITH THE STORY AND HAVE. LIVED THE LIFE AS A SAILOR. MYSELF. DEPLOYMENTS HAVE HISTORICALLY. BEEN HELD TO A NORM OF ABOUT SIX.
MONTHS. MAX. THE CHIEF IN NAVAL OPERATIONS. WOULD HAVE TO INTERVENE. STILL HAS TO. THAT'S THE SENIOR UNIFORMED. OFFICER IN THE NAVY. IT'S BECOME TOO OFTEN THE NORM. THAT THESE CARRIER STRIKE GROUPS. AND THEY ARE NOT THE ONLY ONES. BUT THEY ARE THE MOST VISIBLE. THAT HAVE DEPLOYMENTS THAT GO. WAY BEYOND THAT SIX MONTHS. THAT DOES WEAR ON THE SHIP. IT ALSO WEARS ON THE SAILORS. BUT IT'S UNSUSTAINABLE WITH THE. FLEET THAT WE HAVE TODAY SO THE. ONLY WAY YOU FIX THIS IS GETTING.
MORE SHIPS. THAT'S THE SIMPLE SOLUTION.. >> Gillian: GETTING MORE SHIPS. BUILT. >> AND THE SAILORS ON THOSE. SHIPS. THE WORLD IS A DANGEROUS PLACE. YOU CAN'T NOT HAVE THE U.S. NAVY. IN THE ARABIAN SEA. >> John: THE IWO JIMA WAS OUT. FOR TEN MONTHS. GETTING BACK TO NORFOLK AFTER. THE MADURO OPERATION AND GOT. EXTENDED IN THE CARIBBEAN. I WANT TO TALK ABOUT THE STRAIT. OF HORMUZ. THE ENERGY SECRETARY SAYS WHAT'S. THE BIG DEAL? THE STATE OF HORMUZ ISN'T. CLOSED. WE'RE GETTING PLENTY OF OIL. THROUGH. THANKS TO THE COORDINATED. EFFORTS OF THE U.S. MILITARY AND. OUR GULF ALLIES THE SEVEN DAY.
AVERAGE FOR OIL LEAVING THE. STRAIT OF HORMUZ IS CURRENTLY AT. ALMOST 9 MILLION BARRELS A DAY. BUT COMBINED WITH THE FIVE TO. 7 MILLION IN THE REGION VIA. NEWLY UPGRADED PIPELINE. HISTORICAL PIPELINES AND EXPORT. FACILITIES TOTAL OIL FLOWS ARE. CURRENTLY AVERAGING. APPROXIMATELY 15 MILLION BARRELS. A DAY. ON SUNDAY ALONE OVER. 20 MILLION BARRELS LEFT THE. ARABIAN GULF REGION WHICH IS. ABOVE THE PRE-CONFLICT AVERAGE. THE KEPLER REPORTS THE SHIP. TRAFFIC IS AT A THREE MONTH LOW. AVERAGES DE, FIVE DAY AVERAGE.
WAS 13 SHIPS PER 90% LOWER THAN. THE 130 SHIPS PER BEFORE THE. WAR. IS CHRIS RIGHT CORRECT? >> HE IS CORRECT ON THE FLOW OF. CRUDE OIL. BEFORE THE CONFLICT IT WAS 15, 16 MILLION BARRELS PER DAY AND. THE PIPELINES, THERE ARE TWO. THAT GO THROUGH THE STRAIT. ONE IS THROUGH THE UAE AND THE. EAST-WEST PIPELINE THAT GOES. FROM THE PERSIAN GULF SIDE OF. SAUDI ARABIA TO THE RED SEA. STILL A LITTLE BIT UNCOMFORTABLY.
CLOSE TO THE HOUTHIS. THE ONE THAT'S MISSING FROM THAT. IS LNG. THERE IS NO PIPELINE. YOU HAVE TO MOVE THAT. QATAR IS PERHAPS ONE OF THE. LEADERS OF THE EXPORTING OF LNG. WHICH OUR ALLIES IN NORTHEAST. ASIA HAVE A PRETTY HIGH RELIANCE. ON. THE MARKET FOR PETROLEUM IS. INTERCONNECTED. IT'S ONE OF THE REASONS WHY EVEN. THOUGH WE HAVE A SURPLUS OF. PRODUCTION IN THE UNITED STATES. THE PRICE AT THE PUMP STILL GOES. UP. CRUDE IS ABOUT 50% OF THE IMPACT. DRIVING THE COST AT THE PUMP.
IF YOU'VE GOT A DEMAND FOR CRUDE. OIL, THE U.S. IS GOING TO SUPPLY. THAT TO WHOEVER IS THE HIGHEST. BIDDER. >> Gillian: IT SEEMS LIKE. BASED ON WHAT YOU JUST LAID OUT. AND EVERYTHING WE ARE SEEING. THIS WEEK THE U.S. IS FIRMLY IN. THIS ECONOMIC WARFARE PORTION OF. THIS ENGAGEMENT WITH IRAN. HOW LONG DO YOU SEE THIS PLAYING. OUT FOR? HOW LONG DO YOU THINK IT CAN. SUSTAIN ITSELF?
>> THE TIME LENGTH IS ANYONE'S. GUESS AND I DON'T THINK THE. IRANIANS WHO HAVE A CONTROLLING. PART OF THIS IN TEHRAN REALLY. KNOW EITHER BECAUSE FOR THEM. IT'S WHEN IT STARTS TO BREAK. THEIR ABILITY TO CONTROL THE. POPULACE IN IRAN. >> Gillian: "POLITICO.". >> ECONOMIC MORE THAN ANYTHING. ELSE AT THIS STAGE. FOR IRAN ITS CONTROL OF THE. PEOPLE PREPARED FOR THE. UNITED STATES ITS CONTROL OF THE. STRAITS OF HORMUZ AND MORE. IMPORTANTLY THE ENERGY MARKETS. ASSOCIATED WITH THAT AND. OF COURSE MAKING SURE THEY DON'T. HAVE ANY NUCLEAR WEAPONS.
>> John: THE ECONOMIC PRESSURE. CREATES POLITICAL PRESSURE COME. A POTENTIAL UPRISING. AS WE SAW BACK IN JANUARY. THE CHANCES OF THAT SEEM VERY. SLIM. THANKS FOR BEING WITH US. BRAND NEW FOX NEWS POLLS FOR T.
