Source: Fortune
Summary
Iran has signaled that it will control who can pass through the Strait of Hormuz, a vital waterway for global oil and gas shipments. Oil prices have surged as Iran’s attacks on shipping in the Persian Gulf have created a de facto blockade, with Wall Street warning of potential price hikes. The US military has yet to re-establish free navigation through the strait, and President Donald Trump is trying to assemble a naval coalition to reopen it. Iran has allowed some vessels to transit the strait, including oil shipments to China, while hundreds of tankers carrying supplies from other countries remain bottled up in the Gulf.
Our Reading
The announcement sounds familiar.
Iran is playing gatekeeper in the Strait of Hormuz, allowing some vessels to pass while blocking others. The US Navy has called the strait a “kill box” due to the numerous threats posed by Iranian missiles, drones, and mines. The US is deploying a Marine Expeditionary Unit to the Mideast, but experts say a proper naval escort mission would require more ships, air power, and perhaps ground troops to neutralize Iranian threats. The situation is complex, and as one expert notes, “all U.S. response options are suboptimal.”
Iran is getting its oil shipments out to China, while others are stuck in the Gulf.
Author: Evan Null
