Source: Fortune.com
Summary
The situation between the US and Iran remains tense, with both sides hardening their positions on ceasefire talks. The US has extended its deadline for Iran to open the Strait of Hormuz to April 6, while Iran has tightened its grip on the strait and continues to fire missiles. The conflict has disrupted oil and natural gas shipments, raising prices worldwide. Iran has started charging tolls for safe passage through the Strait of Hormuz, which has been described as a “de facto toll booth” regime.
Our Reading
The numbers tell one story. The US has offered shifting objectives, including ensuring Iran’s missile and nuclear programs are no longer a threat and ending Tehran’s support for armed groups in the region. Iran, on the other hand, is hoping to get the US to back down by disrupting the world economy. The conflict has sent Brent crude up more than 40% since it started. Iran’s leadership may see surviving the onslaught as victory. The US would need a dramatic escalation to end Iran’s attacks and restore the free flow of goods through the strait. Iran’s grip on the strait is starting to look like a long-term play.
Author: Evan Null
