US Navy guys
© Reuters
US Navy in the Strait of Hormuz
Global crude prices have jumped on foot of the escalating tensions in the Middle East, where a US military drone was shot down by Iranian forces over the Strait of Hormuz, a chokepoint for oil supplies.

RT's Boom Bust talked to David McAlvany of McAlvany Financial Group and to former Pentagon Official Michael Maloof, to discuss various aspects of the incident.

"It will be very disconcerting throughout the Gulf because not only oil and gas travel over there but a lot of commerce... for all those countries in the Persian Gulf. So, I think overnight we will all have a global recession set in," Maloof warned.

David McAlvany added that "It also raises the stakes for China. They are still bringing in quite a bit of the Iranian oil. Of course, it puts pressure on the rial, continues to put pressure on the Iranian people and the Iranian economy. So, these are all critical elements to a reduction of exports..."