STOCK MARKET WATCH - Wednesday, 11 January 2012

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31. 3 Places Where a Looming Energy War Could Mean Global Economic Disaster in 2012

http://www.alternet.org/environment/153725/3_places_where_a_looming_energy_war_could_mean_global_economic_disaster_in_2012/

Welcome to an edgy world where a single incident at an energy “chokepoint” could set a region aflame, provoking bloody encounters, boosting oil prices and putting the global economy at risk. With energy demand on the rise and sources of supply dwindling, we are, in fact, entering a new epoch — the Geo-Energy Era — in which disputes over vital resources will dominate world affairs. In 2012 and beyond, energy and conflict will be bound ever more tightly together, lending increasing importance to the key geographical flashpoints in our resource-constrained world.

Take the Strait of Hormuz, already making headlines and shaking energy markets as 2012 begins. Connecting the Persian Gulf and the Indian Ocean, it lacks imposing geographical features like the Rock of Gibraltar or the Golden Gate Bridge. In an energy-conscious world, however, it may possess greater strategic significance than any passageway on the planet. Every day, according to the U.S. Department of Energy, tankers carrying some 17 million barrels of oil — representing 20 percent of the world’s daily supply — pass through this vital artery.

So last month, when a senior Iranian official threatened to block the strait in response to Washington’s tough new economic sanctions, oil prices instantly soared. While the U.S. military has vowed to keep the strait open, doubts about the safety of future oil shipments and worries about a potentially unending, nerve-jangling crisis involving Washington, Tehran and Tel Aviv have energy experts predicting high oil prices for months to come, meaning further woes for a slowing global economy.