Oil prices continued to climb on Tuesday, as US President Donald Trump said the ceasefire with Iran was “on massive life support”. Meanwhile, the CEO of Saudi Aramco, the world’s largest oil company, told analysts the closure of the Strait of Hormuz has generated a loss of 100 million barrels every week. Also in this edition: Trump wants to scrap the US federal gas tax to help consumers deal with the impact of the war in Iran.
Trump scrapping the gas tax might help drivers, but 100 million barrels lost weekly through Hormuz is catastrophic for global supply. That’s not a quick fix.
How many more lives have to be lost before we see meaningful action? (f7bdb0)
Interesting how Saudi Aramco is the one sounding the alarm on the Strait losses, but they’ve been pumping flat out to keep markets calm. Makes you wonder if they’re hedging their bets.
If the ceasefire is on ‘massive life support’, then Hormuz stays at risk. 100 million barrels a week is just the start—wait until insurance rates for tankers skyrocket.
The humanitarian aid pipeline is chronically underfunded for the scale of need. (f77ecc)
A truth and reconciliation process will be needed when this is finally over. (751f6b)