How the Strait of Hormuz Stifled a Market Rally
Questions about how freely ships can pass through the waterway have pushed up oil prices and weighed on stocks.
Questions about how freely ships can pass through the waterway have pushed up oil prices and weighed on stocks.
Investors were in a more sober mood after sharp moves on the previous day.
The war in Iran, now in a two-week ceasefire, drove up the costs of fertilizer and fuel, pressuring farmers far from the Gulf. Our Vietnam bureau chief, Damien Cave, reports from the Mekong Delta on how the strain on the rice industry is signaling food supply problems and higher prices to come.
Analysts said oil and natural gas energy companies would not quickly restore production unless attacks stopped and ships started moving through the Strait of Hormuz.
The American defense secretary warned President Trump could still order a commando raid to seize 970 pounds of enriched uranium buried in Isfahan if Iran does not agree.
A handful of vessels have crossed the crucial waterway since the U. S. -Iran truce began, but shipowners, insurers and others are wary of safe passage.
Both the U. S. and Iran are now talking about imposing fees on ships using the vital passageway.
Oil prices are rising and stocks are selling off as investors fret that the president will carry out his threats to “decimate” Iran.
After seesawing between diplomacy and threats, the president may find it harder to knock down prices by suggesting pauses or progress in talks.
The economic fallout of the war in Iran is pushing farmers to the brink as the price for fertilizer soars just before planting season. Supply chain disruptions through the Strait of Hormuz are adding new uncertainty to an already struggling farming sector.
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.
A growing energy crisis could push countries to burn more fossil fuels in the short term, experts say. Plus more climate news.
The average price of gasoline in the U. S. has topped $4 a gallon, a multiyear high, as war in the Middle East roils the oil market and slams drivers.
Investors weighed the news that the owner of a Kuwaiti tanker loaded with oil said it had been hit in an Iranian attack near Dubai.
President Trump said that Iran had agreed to release 20 more cargo ships of oil through the Strait of Hormuz starting on Monday.
The president, speaking to reporters on Air Force One, cast the permission as a “sign of respect. ” He also asserted that the United States had already achieved “regime change” in Iran.
Iran has allowed a small number of vessels to pass, but that won’t alleviate pressure or risk for the shipping industry and energy markets any time soon.
The world’s largest crypto exchange is under fire after investigators found accounts moving $1. 7 billion to entities linked to Iran. Clues about those accounts were in plain sight for over a year.
The reprieve would ease disruptions in Malaysia’s energy supply, but the prime minister has vowed to make preparations for a more volatile future.
Iranian tourists with visas will be barred for six months in case they are ‘unable or unlikely’ to go back because of the war, Australian officials said.