A strait, stirring the global markets? Trump knows the "leverage effect" all too well

The strength of the Strait of Hormuz lies in the fact that it is small itself, but has a huge impact. This is a typical "lever point."
Trump's recent statement essentially uses this leverage—using the smallest action to trigger the biggest market reaction.
This strategy is common in financial markets: identify key variables and then amplify their impact.
And the Strait of Hormuz happens to be a key variable in the energy system.
So you'll see that every time there's a disturbance here, the market overreacts. Because no one wants to bet that the worst-case scenario won't happen.
But from a probability standpoint, extreme cases are actually rare.
This gives rational investors room: to stay calm when emotions are overheated, and to position themselves when emotions cool down.
In other words, others see the news, you see the rhythm.
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