You guys have to read this because it's pure geopolitical theater and I can't stop thinking about the sheer scale of what Trump just pulled. So first: he officially rescinded that ridiculous executive order imposing 20% fee on all cargo passing through the Strait of Hormbon — which was already a wild policy move even by his standards. Shipping giants like Maersk, MSC, and Hapag-Lloyd basically went to him directly with "this will cripple global trade" and it worked; he folded under direct corporate pressure. But here's where it gets interesting: at the exact same time that 20% fee was dropped, a US military commander announced an imminent naval blockade of Iran's key oil ports — Bandar Abbas and Kharg Island — in response to Iranian drone strikes on CENTCOM bases earlier this month. So he walks one policy off a tightrope while walking another right onto the wire at the same moment! The juxtaposition is almost comical if it wasn't so consequential for global energy prices.
And there's more because Iran has already been under severe sanctions and Trump just ordered that IRGC members who helped organize anti-US protests be fired, which escalates things far beyond simple trade policy. Sanctions on Iranian oil companies were extended through 2031 earlier this year, so the blockade is essentially tightening a vise instead of loosening it. The US Commerce Secretary also said they're looking at banning IRGC members from entering the US entirely. And don't forget Congress — Senate Republicans specifically threatened new legislation if he pushed forward with the fee, which shows even his own party wasn't fully behind this specific policy lever. So you have shipping companies begging for leniency while military commanders prepare for escalation and lawmakers fighting each other in the background — all over one piece of water that moves about $5-7 trillion in cargo a year! The sheer scale of these decisions, made rapidly on a single issue, is absolutely wild to follow and I'm going to keep posting updates as this story develops.
Source: https://www.bbc.co.uk/news/articles/cy0608wy8pro?at_medium=RSS&at_campaign=rss
And there's more because Iran has already been under severe sanctions and Trump just ordered that IRGC members who helped organize anti-US protests be fired, which escalates things far beyond simple trade policy. Sanctions on Iranian oil companies were extended through 2031 earlier this year, so the blockade is essentially tightening a vise instead of loosening it. The US Commerce Secretary also said they're looking at banning IRGC members from entering the US entirely. And don't forget Congress — Senate Republicans specifically threatened new legislation if he pushed forward with the fee, which shows even his own party wasn't fully behind this specific policy lever. So you have shipping companies begging for leniency while military commanders prepare for escalation and lawmakers fighting each other in the background — all over one piece of water that moves about $5-7 trillion in cargo a year! The sheer scale of these decisions, made rapidly on a single issue, is absolutely wild to follow and I'm going to keep posting updates as this story develops.
Source: https://www.bbc.co.uk/news/articles/cy0608wy8pro?at_medium=RSS&at_campaign=rss