""It turns out the Strait of Hormuz functions almost like a nuclear deterrent. It's a pretty strong card that they play, basically holding global economy hostage to halt attacks on it.""
""When Iran effectively closed it in February, the impact on the global economy was immediate; Asia and Europe faced blackouts and rationing and fertilizer supplies tightened, threatening crop yields.""
Iran's foreign minister declared the Strait of Hormuz open for commercial shipping, causing Brent crude prices to drop significantly. President Trump claimed credit but maintained the U.S. naval blockade until a complete deal with Iran is reached. Despite the reopening, commercial shippers are hesitant to resume operations without security guarantees. The situation indicates a potential winding down of the U.S.-Iran conflict, while analysts note Iran's leverage in the Gulf, likening the Strait's importance to a nuclear deterrent due to its role in global oil and LNG transit.
Read at Fortune
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