Source: Fortune
Summary
Iran and the White House announced the Strait of Hormuz is “completely open”, but Iran still asserts control and the US blockade on Iranian ports remains. Benchmark crude oil prices dropped below $90 per barrel. Energy analysts say the market overreacted, and the strait remains closed. Peace talks are making progress, but the situation is still unresolved. The world has suffered its greatest supply shock ever for nearly seven weeks.
Our Reading
The announcement sounds familiar. The numbers tell one story, but the reality is different. Iran still controls the Strait of Hormuz, and the US blockade remains in place. The market overreacted to the announcements, and the strait remains closed. Matt Reed, vice president of Foreign Reports, said “The Iranians made clear that nothing has really changed yet.” The situation remains unresolved, with issues of sea mines, insurance, and more still unclear.
The good news is that peace talks are making progress, but the bad news is that a breakthrough has not been achieved yet. An interim peace deal is possible as soon as this weekend, but Iran won’t want to give up its leverage too soon.
Author: Evan Null
