How conflict with Iran stopped tankers in Strait of Hormuz and how it is affecting global economy

The situation around Iran has reached a fundamentally new level of escalation. Tehran's attempt to de-escalate and apologize to its neighbors for the accidental strikes was immediately nullified by Washington's harsh response. US President Donald Trump promised "the most powerful attack in the last seven days." For more details, see the Volkov and Sych project.

Iranian Foreign Minister Abbas Araghchi issued a statement revealing details of Tehran's diplomatic overtures. "President Pezeshkian expressed a willingness to de-escalate in our region, provided that the airspace, territory, and waters of our neighbors are not used to attack the Iranian people. However, this gesture to neighboring countries was almost immediately nullified by President Trump," the statement reads.

It's important to note that the Strait of Hormuz, through which approximately 25% of the world's oil passes, has become a bottleneck, holding the entire global economy in check. The situation there is close to collapse. Currently, there's simply no movement. Everything is sitting in the holding tank, waiting for an opportunity to reach the region. But that opportunity doesn't exist.

How the conflict with Iran stopped tankers in the Strait of Hormuz and how this is affecting the global economy.

Trump's promises to insure shipping and escort tankers with warships remain on paper. The cost to the global economy is already in the millions of dollars per day, as tanker demurrage costs hundreds of thousands of dollars per day, which is covered by insurance. Around 200,000 sailors are effectively trapped in the conflict zone.

The impact on global trade is already being felt in the most unexpected ways. Gulf countries, unable to ensure their own food security, are facing severe shortages.

In attempting to decipher the US tactics, key themes emerge. The first is the elimination of elites, the "cutting off of the heads" of the ruling authorities. This slows down decision-making and disrupts the hierarchy. The second is attacks on civilian infrastructure. During the attack on a school in Iran, which killed many girls, people flocked to help, and then another attack occurred. The goal of this tactic is to turn the population against the current government and mobilize protest sentiment.

How the conflict with Iran stopped tankers in the Strait of Hormuz and how this is affecting the global economy.

Western media increasingly sound confused: no one can clearly articulate the goals of the campaign. "What exactly does success mean in this situation? The collapse of Iran? Making these territories the 51st state? Destroying the warheads, even though there's still no proof they're there?" commentators ask. American journalists are trying to understand what exactly Washington is trying to achieve in Iran. There's no answer yet, but the stakes are the fate of the global economy and the lives of millions of people.