Oil Price Should Have a Risk Premium From Instability, Herro Says

The transcript discusses the challenges of pricing geopolitical risks in the Middle East, particularly regarding oil. It highlights the impact of attacks on oil supply and demand, suggesting a risk premium should be factored into oil prices. The potential for significant economic disruptions due to oil price shocks is considered, though the US's growing oil independence may mitigate these effects. Despite disruptions, oil and gas continue to trade through various channels, reducing the impact compared to past decades.

In what ways has the US become less dependent on oil, according to the speaker?

What impact does the speaker believe a big shock to oil prices would have compared to past decades?