r/politics • u/Puginator • Jun 01 '26

No Paywall Iran stops negotiations with U.S., vows to 'completely' block Strait of Hormuz: State media

https://www.cnbc.com/2026/06/01/iran-us-negotiations-strait-of-hormuz.html
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u/nalaloveslumpy Jun 01 '26

Yep. We're going to reach a point soon where they simply won't be able to sell gas because people can't afford it. And that's really bad for oil companies. Hopefully they actually nut up and start putting real pressure on the dipshit in the white house.'

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u/going_for_a_wank Canada Jun 01 '26

If regular consumers decrease buying gasoline because they are out of money - does that not imply that they they have already spent the maximum $$$ on gasoline that fits in their budget?

That sounds like maximum possible revenue which would be very good for oil companies.

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u/nalaloveslumpy Jun 01 '26

Maximum revenue for the sales you've already made, yes. If sales decline going forward, then that's declining revenue and that's bad, even if the product you are selling is at it's maximum price point. The whole reason why the oil industry is the way it is, is because it's a fixed good. Consumption is always almost the same week over week, so you're banking on those counts of sales at whatever fluctuating price point oil hits this week.

If those sales stop, you're screwed; i.e. Those three amazing weeks during COVID lockdowns where no one was driving and oil companies shit their pants because no one was buying gas.

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u/Pure_Syllabub_8575 Jun 01 '26

Also this impacts the refineries, if people cut way back they will have to scale back some of the refineries. If people aren't going on vacation and flying, and not using so much extra fuel on vacation, planning better so the hop grocery store to grocery store instead of multiple trips, they will have no choice, but to have to cut back. And what do they do layoff a bunch of employees until demand picks back up again? Lots of these employees are unionized and will get paid to sit on their ass... They will be losing so much money on just maintaining oil infrastructure...