US Fires on Panama Ship. Result Is Upward Pressure on the Price of Oil

Trump and Iran have blockaded each other. So who's in control?

Source: Mish Talk

DW NOTE

The Strait has been blockaded for 119 days. Oil is up 9.8% this week but still 25% below the peak. That gap is the story — the market priced in full closure months ago and has since decided it can live with it. Firing on a Panamanian-flagged vessel changes nothing structural; Hormuz remains shut, negotiations remain stalled, and prices remain well off their highs. This is what accommodation to a new equilibrium looks like.

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