The Diplomatic Off-Ramp Is Closing, The Economic Threat Keeps Growing

Iran says negotiations with the United States are over, blaming repeated ceasefire violations and Israeli strikes in Lebanon

Now Tehran is threatening to completely block the Strait of Hormuz and warning about the Bab el-Mandeb Strait as well

Around 20% of the world’s oil moves through Hormuz

Bab el-Mandeb is one of the most important shipping routes linking Europe, Asia and the Middle East

Oil jumped immediately as traders started pricing in the possibility of supply disruptions

The market is reacting to the possibility that diplomacy is shrinking while economic pressure points are getting pulled into the conflict at the same time