only the accounting exercise that is being done, right? Now,

NVIDIA is getting cash flow, but not as big as the revenue that we're seeing.

Okay? This circularity of capital is of big concern to me.

And I have to go back in history, I'm sorry, because this happened before.

Not once, not twice, multiple times.

Okay.

Let's only focus on the United States.

And oil, how does it fit in the picture? Should I buy oil?

Can we consider oil, first of all? How quickly are global markets pricing in a sustained risk premium into crude? And can I ask you for a little bit of context here? How does the current situation compare to perhaps previous friction points in the region?

Well, Tim, things have gone in so many directions at the moment that it's becoming really worrying.

So when we spoke last time, I think, when this whole war started late February, we expected it to last two weeks, 10 days maximum.

And here we are.

It's still happening.

It's still escalating.

We don't see the light at the end of the tunnel.

Is this a a temporary geopolitical spike, or do you think we're looking at a more prolonged period of higher energy prices?

Can you put into context how shocks in the oil market bleed into, to everyday stock portfolios?

Absolutely.

Um, it's actually a very straightforward mechanism.

Energy prices go up.

This feeds into everything related to logistics, transportation, um, and then feeds into the end product.

Once it feeds, feeds into the end product, this is what we call an inflation spike.

It's a direct supply-side inflation shock, as opposed to demand-side inflation shock.

Yeah.

And 90 days in, broadly, what does it mean for our personal cash flow, for business overheads and investment portfolios? What would you respond to if I put that to you?

Well, first of all, thanks for having me again.

We are getting into the territory of first case scenario.

When this whole thing started, we all thought this is going to be two, three weeks and then it's going to be solved because closing the Strait of Hormuz is not something simple.

It's a major, major event.

The problem is that what has been helping oil prices to remain relatively tame is are the reserves that most countries have.

And most countries have oil and gas reserves three to six months, with it being more closer to three months for most countries.

Is this spike a temporary kind of knee-jerk reaction or are we settling into a more sustained high-cost energy cycle?