Reopening Strait of Hormuz Would Ease Oil Crisis but Only So Much
Analysts said energy and shipping companies would be reluctant to fully restore operations until they were confident that hostilities were over.
Analysts said energy and shipping companies would be reluctant to fully restore operations until they were confident that hostilities were over.
If tankers do not soon begin crossing the Strait of Hormuz, airlines in Europe may not have enough jet fuel to operate all of their flights.
In a thinly veiled critique of the war in Iran, China’s leader said the world could not risk reverting “to the law of the jungle.”
The conflict could also fuel another bout of inflation, according to the International Monetary Fund.
Oil markets shrugged it off, but the effort to hurt Iran could provoke retaliation that inflicts more damage on energy assets and the global economy.
The U.S. military has provided few details on how it might carry out President Trump’s orders as he seeks to pressure Tehran on a peace deal. But history and established practices offer some clues.
President Trump is trying to choke off the country’s lifeline with a blockade of the Strait of Hormuz. But the Iranians are betting that his tolerance for political pain is limited.
Iran denied that the American destroyers had entered the strait, as negotiations for an extended cease-fire continued in Islamabad.
An association of airports told European Union officials that fuel shipments through the Strait of Hormuz had to restart within three weeks to avoid a “systemic” shortage.
The interconnectedness of global energy markets means that the effects of Iran’s blockade of the waterway are not limited to countries directly dependent on oil from the Middle East.