The headline says that the crude oil tanker is one that is Saudi-flagged and adds to the earlier attack on an LNG tanker struck in the same area. In case you missed it: More on reports Iranian forces strike LNG tanker and commercial ships in Strait of Hormuz
The supposed reopening of the Strait of Hormuz is not going too smoothly, to say the least. And all of this just adds to more complications with the situation already not showing a material pick up in overall activity in the past few weeks. As mentioned yesterday: A week later and not much has changed with the Strait of Hormuz situation
You can’t help but feel that these sporadic attacks are premeditated on the part of Iran. So long as there are reports of these attacks taking place, maritime insurance companies will continue to charge an otherworldly premium on ships trying to cross the waterway. And in doing so, it effectively stifles commercial vessels from trying to pass through.
And so long as that continues to be the case, Iran will maintain some leverage over negotiations with the US. That especially since their modus operandi is to keep kicking the can down the road.
As such, the expected playbook on the Strait of Hormuz is definitely still very much playing out accordingly. We’re now at Stage 4 and 5:
This article was written by Justin Low at investinglive.com.