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Admiral Joe Sestak, U.S. Navy (Retired), on the increasing tension in the Strait of Hormuz and its impact on oil prices.
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Look it we want to let you folks know that this situation in the Strait of Hormuz is extraordinarily important Anthony touched on that but because.
Any kind of fear that jumps into the world markets like that can affect your basic stocks -- -- I don't even something like.
McDonald's or Citigroup so let's get more deeply into this developing situation in the Strait of Hormuz we know that app.
The time the that according to the US navy officials -- civilian operated navy oil tanker shot at a smaller vessel.
After quote exhausting all warning measures.
One person confirmed dead again the initial story about why this matters about 20% of the world's oil passes through the Strait of Hormuz.
Of course it's very close to Iran joining us now in a Fox Business exclusive from Washington DC is someone who actually knows.
What it's like to be in that pressure cooker stretch of water he commanded ships through the strait.
For the US navy retired admiral Joseph stack and former congressman.
From the state of Pennsylvania and a Democrat great to have you I wanna call you admiral right -- because that is certainly.
The title that we want to address here but looking at this and weaving it into the global markets.
What do you make of what's going on you've been on ships that commanded through that strait have you not yes.
Both the small ship the guided missile frigate as well as an aircraft carrier battle group that I took in there.
But just -- as a precursor to the Iraq War we -- had tough waters list.
There are hundreds of small cigarette boats with the similar outboard motors a cross between I ran.
And the UA -- only about thirty miles away smuggling cigarettes is one of them an Iranian.
A guard.
It is gonna come after you just two years ago five of those small boats that -- belong to there's -- Nat guard revolution guards circled and DDG -- bars and almost took we took them under fire.
We have as you know 20% he will going through the at the last time the straits was closed down with back in 197374.
Where OPEC gave a virtual closing of the straights and said.
We're not gonna selling oil to the United States of America.
Our stock market plummeted in that he remember the lines are too young not soaring to a -- I absolutely do especially in California Joseph where we have you know my deficit doctor so he put aside -- -- -- -- a doctorate you can get back after.
This is a -- and as you just mentioned just before this -- -- I China going into potentially hard -- the EU on the cost of going into a recession full time.
This would be an immense impact upon the global economy.
What is -- -- the -- -- that it it well everyone stressing it was a civilian run boat that.
Their word US navy sharpshooters support it just goes to show how prepared.
Our military truly is this is.
A united states naval vessel it is -- walls of war we have.
And several of -- supply ships this is an oil that are manned by a civilian crew but the captain is -- naval officer.
And we always embark on them a military detachment.
To do the self protection since we don't want civilians doing acts of war.
This is by any it's no stretch of the imagination -- united -- naval vessel we can't back away from that.
But we train that military crew for months prior to -- our deployment.
To make sure that they have a proper rules of engagement.
They fired flares they text short slice.
And they took warning shots -- these are well trained but this is really tough because and untoward incident can gold go conflagration a very sensitive time right.
Now -- for right now we don't know the exact details there's an investigation under way it could have simply been one of the smugglers you were talking about -- -- fisherman but what if it does turn out.
That it is indeed.
-- -- But captive by Iranians who had some insidious it interest in affecting what happens in there.
What does the United States government need to do with that point we've had a lot of Saber rattling but no real action.
At that time we need to make sure our guard is up first and foremost for our troops out there we have a second aircraft carrier coming out there so we keep it to at all times but.
We will go through a third party probably -- begin to lay out what really happened out there.
We used to have with the Soviet Union and even with China we have today something called the incident at C agreements and -- when they were -- Adversaries we had those I always advocated we should have won with I ran that you actually have the ability.
To help ameliorate some of these tensions Liz.
You might remember back in the eighties.
We actually shot down the civilian airline about 300 civilians so this is tough out there but we will have to lay this out very well because I have no doubt.
That this -- so well trained did it right by the book.
Our thanks to retired US navy admiral and former congressman Joseph assessed -- thank you for coming on the program to really clarify what's going on there.
-- -- would you -- any time any.
