5/ The administration has the tools to interrupt this: naval escorts, DFC political risk insurance, and the SPR. The IEA said today it has no plans for an emergency reserve release. The next 7–10 days — and whether diplomacy produces even a partial stand-down — will determine whether $88 was the ceiling or a rest stop.
1/ The Strait of Hormuz is effectively closed. Tanker traffic is down 94% since Operation Epic Fury began Feb 28. The historical daily average is 138 ships. On March 4, there were 5 crossings. WTI is at $88.45. This is not a risk premium — it's a real supply disruption. #OIL $OXY $SPY
READ HERE: https://t.co/XQ2J0riYAk
4/ Qatar's energy minister said Friday that oil could hit $150/bbl and "bring down the economies of the world" if tankers can't move. Goldman Sachs moved $100 Brent from tail risk to base case if the Strait stays blocked 5 more weeks. We're at day 6.