Mike Novogratz says Iran made a strategic mistake by showing the world it can shut the Strait of Hormuz.
“You can only bluff people about the Strait of Hormuz once,” the Galaxy Digital (TSX:GLXY) CEO said on the All Things Markets podcast with Anthony Scaramucci.
Gulf States Planning Massive Infrastructure Response
Now that markets know Hormuz can be closed and will be closed, Novogratz expects a massive infrastructure buildout in pipelines and potentially even a canal to bypass the chokepoint, in an effort to become “Hormuz-free.”
Saudi Aramco has already taken emergency measures, converting its East-West Pipeline to full 7-million-barrel-per-day capacity, rerouting crude from the Gulf coast to Red Sea ports at Yanbu.
But the existing infrastructure was designed for a short disruption, not a structural rerouting.
The UAE’s Habshan-Fujairah pipeline runs just 248 miles and carries 1.5 million barrels per day.
It cost $4.2 billion and blew past …
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