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[Oil and Energy Investor with Dr. Kent Moors]
June 21, 2019
[What I Didn't Tell CNBC Yesterday](
By Dr. Kent Moors
In yesterday's early hours (U.S. time), Iran used a surface-to-air missile to shoot down an American drone.
Not just any drone, mind you, this one:
Source: wired.com
This is an RQ-4A Global Hawk unmanned surveillance aircraft. For those of you who follow such matters, it costs a least $110 million.
The Global Hawk has been the workhorse of the U.S. reconnaissance fleet since its introduction in 2001, logging more than 250,000 flight hours over Iraq, Afghanistan, North Africa, and the Asian/Pacific region.
U.S. command in Qatar says it was in international waters. Teheran says it was in Iranian airspace. The precise demarcation in the waters abutting the strategic (and very narrow) Strait of Hormuz has always been a matter of dispute.
The Strait is the essential waterway connecting the Persian Gulf to the north with the Gulf of Oman and the broader Arabian sea to the south. About a third of all global daily waterborne oil traffic moves through Hormuz.
Source: Al Arabiya
At its apex, the Strait is barely two miles wide. However, the navigable portion of that opening pictured above is considerably narrower.
Meanwhile, both sides acknowledge the drone was launched from the United Arab Emirates (UAE).
One thing, however, is patently clear:
[The shootdown has decisively worsened the dynamics in what has been an already unraveling situation in the Persian Gulf](.
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