Kevin O’Leary, chairman of O’Leary Ventures and 'Shark Tank' star, discussed the economic and market implications of the United States' war on Iran and the control of the Strait of Hormuz during an appearance on 'The Story' on Wednesday [1]. O’Leary described the potential removal of Iran's control over the Strait as a global 'game changer,' emphasizing that it would bring greater stability to world markets [1]. He noted that the closure of the Strait is currently impacting energy markets, with about 20% of the world’s crude oil and natural gas passing through the Iran-controlled waterway, which remains closed to U.S. vessels [1].
Gas prices have surged nationwide, rising more than $1 since President Donald Trump launched the war on Iran nearly one month ago. The national average for regular gas now sits at $3.98 per gallon, compared to $2.94 before the U.S. struck Iran, according to AAA [1]. O’Leary explained that recurring disruptions, such as attacks by Iranian proxies like the Houthis, have historically destabilized the region and increased insurance prices. He argued that a Strait no longer under Iranian reign would eliminate these disruptions, leading to greater stability in the fastest growing part of the earth and a bullish outlook for world markets [1].
O’Leary predicted that once the Strait of Hormuz reopens, oil prices would drop to the mid-$70s per barrel, as they were prior to the conflict, and that the market would adjust immediately. He estimated it would take about two weeks for gas prices at the pump to reflect this change [1]. He also suggested that reconstructed governance of the Strait to ensure it remains open 'forever' would provide worldwide security and benefit all nations, given the universal need for energy commodities [1].
While O’Leary acknowledged the suffering caused by the war, he emphasized that Americans are willing to endure short-term pain for the prospect of long-term energy stability and security. He highlighted that investors are focused on the potential policy outcomes, which could resolve a problem that has persisted for 60 years [1].
CONCLUSION
Kevin O’Leary sees the removal of Iran's control over the Strait of Hormuz as a major positive for global markets, predicting a swift drop in oil and gas prices and increased stability. Despite current price surges and regional turmoil, he believes investors and consumers are prepared for short-term challenges in exchange for long-term energy security. The event is viewed as highly market-moving, with bullish implications for world markets if the Strait reopens.