Biden's 2024 Presidential Election Hopes In Doubt By Iran's '$6 Gas' Hormuz Gambit, Former Aide Warns

Former energy advisor at the White House Bob McNally commented on the geopolitical tensions in the Middle East, emphasizing Iran’s influence over the United States through potential threats to the Hormuz Strait.

What Happened: McNally highlighted the significant impact such actions could have on President Joe Biden’s political future and fuel prices.

During an appearance on CNBC’s “Last Call” on Tuesday, McNally, a former energy advisor, pointed out that Iran is aware of its strategic position to affect U.S. politics by threatening to close the Hormuz Strait, a crucial chokepoint for global oil shipments.

"Our base case is Iran is still going to be cautious. It does not want to get into a shooting war with the United States of America because it knows it will lose.'” McNally said.

IRGC Naval Commander Alireza Tangsiri recently warned to close the Hormuz strait as a retaliation to the attack on its consulate in Syria. McNally explained that the message was, in reality, directed to President Biden, asking him to “restrain Israel.”

“Iran knows that its only leverage over Israel is really with the United States. Because Iran can guarantee an election loss for President Biden. Iran can send pump prices to $6 or higher… and Biden knows they can do that.”

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Why It Matters: The Middle East is experiencing heightened tensions, with analysts like Helima Croft warning of a “serious escalatory tit-for-tat cycle” if Iran retaliates, potentially leading to a wider regional conflict. This could have significant implications for oil markets.

Former U.S. Defense Secretary Mark Esper anticipates that Iran will retaliate against Israel but will aim to avoid a full-scale escalation. This measured response is expected to target Israeli interests specifically.

Amid these developments, Israel-related stocks and ETFs are facing downturns, with investors cautious about the escalating conflict. However, large tech companies like Check Point Software seem to be resilient.

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