"The US is being very smart about the blockade. It dangles prospects of peace to markets, which caps oil prices. That defangs Iran's main negotiating leverage, which is to cause panic and push oil prices higher. The mullahs are getting pushed into a corner."
"In effect, Iran was able to exact a toll on friendly countries that were in desperate need of oil. Events of the last week show that two can play that game, with a U.S. threat against ships that pass through the strait threatening to choke off a crucial source of funds for the battered Iranian regime."
The U.S. has implemented a blockade against Iran in response to its strait blockade on ships not paying tolls. Iran's foreign minister announced that commercial vessel passage through the Strait of Hormuz is open during a ceasefire with Lebanon. President Trump emphasized that the U.S. blockade will remain until a transaction with Iran is complete. The situation has led to a de-escalation as both sides threaten economic pain. Analysts suggest the U.S. strategy effectively limits Iran's negotiating power by stabilizing oil prices.
Read at Axios
Unable to calculate read time
Collection
[
|
...
]