Kevin O'Leary says removing Iran from Strait of Hormuz would be a global 'game changer'
"Shark Tank" star Kevin O’Leary said removing Iran's control of the Strait of Hormuz would be a global "game changer" and he addressed the economic impact of the United States' war on Iran.
"I don't want to make light of the war… but I'm thinking ahead 90 days here, and I'm liking what I see," he said Wednesday on "The Story."
The O’Leary Ventures chairman discussed how the Strait of Hormuz’s closure is impacting markets, saying a Strait no longer under Iranian reign would bring more stability.
"Every nine months, the Houthis or some other Iranian proxy would blow up one tank just to destabilize that region and cause the insurance prices to go up," O’Leary said. "We're talking about a world that doesn't have that going on anymore."
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"It's a game changer in the sense that all of a sudden, you have stability in the fastest growing part of the earth. It's very, very bullish for world markets," he added.
O'Leary's comments come as gas prices have surged nationwide, up more than $1 since President Donald Trump launched the war on Iran nearly one month ago.
About 20% of the world’s crude oil and natural gas passes through the Iran-controlled Strait of Hormuz, which remains closed to U.S. vessels.
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The national gas average currently sits at $3.98 per gallon for regular, compared to $2.94 before the U.S. struck Iran, per AAA.
O’Leary claimed Americans are willing to suffer in the short-term to reap economic benefits following the war.
"They're very sophisticated… They get the joke," he told Fox News. "They are willing to take a small amount of short-term pain for stability and security of energy in perpetuity."
O'Leary outlined how the drop in gas prices could play out once the Strait of Hormuz reopens.
"The minute Hormuz is open, oil prices will drop to mid-70s, as they were prior to the conflict," he predicted. "The market will adjust immediately. It'll take about two weeks at the pump for it to drop."
O’Leary said the potential reconstructed governance of the Strait of Hormuz to ensure it remains open "forever" would provide worldwide security.
"You've got to think about it as a positive for everybody," he said. "Everybody has skin in the game. It's unique in that respect. No other commodity is needed by everybody all the time."
O’Leary emphasized he sympathizes with those affected by the war but said the potential global power shift of a major trade waterway would be remarkable.
"Who likes war? It's horrible, and you feel sorry for the people in Iran. But the policy coming out of this is what investors are looking at," he said.
"You gotta let this play out because the big vision here is to finally stop this problem we've had for 60 years, and I really like that outcome."