The Strait of Hormuz has changed more rapidly than flipping a book these days. What exactly is going on?
Simply put, both the U.S. and Iran are putting on a performance of 'whoever backs down first loses.'
Iran is trying to raise oil prices through actions in the strait, hoping to make the U.S. ease its stance on nuclear issues and sanctions. There is also a lack of unity within Iran, as hardliners want to hold a tight fist in negotiations. As for the U.S., Trump isn't buying into this strategy, responding with vessel seizures and threats.
Despite the fierce rhetoric, neither side intends to engage in actual conflict; they are both trying to strengthen their position at the negotiating table.
In summary: The situation has entered a phase of 'extreme tug-of-war,' and the news will be very volatile. The market has rebounded to a critical position, and this kind of back-and-forth is most susceptible to being exploited, so protect your positions.
Simply put, both the U.S. and Iran are putting on a performance of 'whoever backs down first loses.'
Iran is trying to raise oil prices through actions in the strait, hoping to make the U.S. ease its stance on nuclear issues and sanctions. There is also a lack of unity within Iran, as hardliners want to hold a tight fist in negotiations. As for the U.S., Trump isn't buying into this strategy, responding with vessel seizures and threats.
Despite the fierce rhetoric, neither side intends to engage in actual conflict; they are both trying to strengthen their position at the negotiating table.
In summary: The situation has entered a phase of 'extreme tug-of-war,' and the news will be very volatile. The market has rebounded to a critical position, and this kind of back-and-forth is most susceptible to being exploited, so protect your positions.