Actionable Intelligence Alert with John Polomny

Saudi Arabia may be on the brink. Oil exports are down massively, and their war on the Houthis is not going well. MBS asked Trump for military assistance and was rebuffed. It is not a zero percent chance that the Saudi kingdom could fall.

Lots of news out of the Middle East as the Saudi east-west pipeline is knocked offline.
This effectively knocks out Saudi oil exports. Meanwhile, the Houthis go on the offensive and now effectively control access to the southern Red Sea, which accounts for 12% of global commerce.
They are now advancing eastward to the oil-rich parts of Yemen.
Oil and refined products are soaring. Is the Saudi dynasty under threat?

Diesel prices are now making new all-time highs. This is important because, as we have discussed before, diesel is used in everything. Farming, mining, transportation, etc. Higher fuel costs equal a higher cost of living.

Kevin Warsh, the new FED Chairman, gave his first Jackson Hole comments. Of course, he is going to fight inflation, not engage in QE, and be the next Paul Volcker.
Maybe that is his intent. We will see when the next financial crisis arrives. He will do what all political hacks have done before him: print money.

The Treasury Secretary sells himself as some kind of market genius who thinks he can intervene in markets to fix or quell issues that are structurally based.
He is wrong, as all interventionists eventually find out.
Gold and commodities to benefit, in my view.

The US debt has increased by almost $4 trillion in the last year. It is now poised to cross $40 trillion. This ever-expanding and out-of-control debt will be a positive long-term catalyst for higher gold prices and hard assets in general.

Oil and oil product prices are rising. Long-term rates are rising due to higher inflation expectations. Cost of living and inflation are major issues for the US electorate. A Congressional election is coming, and time is running out.

The US has restarted bombing of Iran with the intent to force them to reopen the Strait of Hormuz. The problem is that product prices are soaring along with oil prices. Can the US accomplish its goal before higher prices force the US to back down due to political considerations?

The war between the US and Iran is back on, and the US strikes infrastructure in Iran. Iran is striking US bases and Gulf state infrastructure. Traders short on oil must be squirming.

I guess the ceasefire is over and the MOU is out the window. Iran fired on some more ships and US installations. The US bombed some rocks. In the meantime, the disruption to traffic in the Strait of Hormuz continues, and global diesel supply is under pressure. Maybe we are not going back to $50 a barrel as soon as many thought.