The skeptics making accusations of "conspiracy theory" and "doom and gloom" have been proven wrong yet again. The geopolitical atmosphere is turning sour fast.

I still don't think a lot of people realize how truly volatile the situation is globally right now. From my point of view, WWIII has already begun, at least in economic terms.

Let's not forget the fact that Ukraine is essentially a proxy for all of NATO against Russia. And, the situation in the Middle East is about to become much worse. Because of the alliances involved and the fragile nature of global energy exports there is a danger of systemic collapse should a wider war break out between Israel and multiple Arab nations. It appears that such a war is imminent.

But why should Americans care? It's pretty simple – War spurs shortages, and shortages in the middle of a stagflationary crisis are a very bad thing.

Sanctions against Russia affect around 10% of the global oil market and around 12% of global natural gas consumption. But so far all that oil and natural gas is still flowing around the world, only the trade routes have changed. The Middle East, on the other hand, accounts for over 35% of the global oil market and 18% of the natural gas market. Widespread chaos in this region would mean economic crisis on a scale not seen in a century.

Think we have problems with stagflation now? Just wait until energy prices go to the moon.

Around 30% of all oil exports travel through the Strait of Hormuz, a narrow passage which a nation like Iran can easily block for months at a time. Sinking a few larger vessels in the straight would obstruct all cargo ship traffic and oil tanker traffic. Trying to clean up the mess would be difficult because artillery, which is almost impossible to intercept, can rain down from Iran on any vessels trying to drag sunken ships out of the way.