Seeing the Hormuz Breakthrough In Its Full Light

The United States and Iran both announced this morning that the Strait of Hormuz is now fully open for the duration of the current ceasefire between Israel and Hezbollah. Although the news is seemingly positive for global trade and the global energy and economic crisis, few developments better illustrate the situation into which Donald Trump and Benjamin Netanyahu have plunged the United States, the global economy and Israel. What we see today is that the health of the global economy in the future depends on the fighting between Hezbollah and Israel. In a way, Iran has always had tacit or latent control over the Strait of Hormuz. Simple geography tells you that. But it wasn’t until Donald Trump forced action that Iran understood how relatively easy it was to pull a lever. They didn’t need to sink any tankers or even seriously damage one. All they had to do was make threats and harass the drones. Marine insurance markets would take care of the rest. It is impossible not to view this as a massive strategic victory for Iran.