On this web page, we will assume you have read our report, Mega Corruption and the Coming Economic Mega Crisis. The purpose of this page is to post periodic updates of significant events that have happened since we first posted our report on August 7.
August 8 Update
Here is a chart of millions of barrels a day getting through the Strait by nation of origin.
Note that before the Iran War started, the daily average was over 100 million barrels a day. So even 20 million barrels was only 20% of the prior average. In May, it was only two million barrels. (the first red circle). In early July, there was a three week period when it got over 10 million barrels or 10% of normal. Currently, it is 5 million barrels or 5% of normal (the second red circle). These ships are almost all Chinese ships which are not being bothered by the US blockade.
Also on August 8, 2026, Iranian leaders posted the following 9 conditions for reopening the Strait of Hormuz:
Iran has laid out nine conditions for reopening the Strait of Hormuz — including $300 billion in compensation, a ban on U.S. and Israeli vessels, and up to 7% transit fees per Fars News. The Supreme National Security Council stated that the U.S. must meet all conditions before the Strait reopens. The conditions include:
1. An end to U.S. threats and insults
2. A permanent end to U.S. wars against Iran and its allies in Lebanon, Palestine, Yemen, and Iraq
3. Lifting the naval blockade and withdrawing U.S. forces
4. $300 billion in compensation for war damages
5. Lifting all sanctions
6. Unconditional release of all frozen assets
7. Iran's right to charge up to 7% on cargo
8. A ban on U.S. and Israeli vessels
9. A 20% violation toll on ships if conditions are breached
The $300 billion figure is not a starting point; it's the price of doing business. The U.S. can accept these terms or keep the Strait closed. There is no middle ground. The ball is now in Trump's court — but the conditions aren't changing.
Also on August 7, US Economics professor, Micheal Hudson stated: "The effect of the Iran war is an inevitable world depression by the end of this year as a result of oil shortages that will lead to soaring oil prices and shutdowns of many companies and farms that can't make a profit under these conditions."
My note: I do not think there will be a major Depression by the end of this year. But I do think a Mega Depression will happen in 2027 as this is when the major food price increases will appear and when consumers will be forced to spend whatever money they have on rapidly rising food prices - leaving nothing left for descretionary spending.