China Tests Trump’s Blockade, Saudi Arabia Tells Trump to End It
Well that was fast.
US-Sanctioned Tanker Tests Trump Blockade
Bloomberg reports US-Sanctioned Tanker Tests Trump Blockade With Hormuz Transit
A US-sanctioned tanker linked to China is making its way through the Strait of Hormuz, testing President Donald Trump’s naval blockade.
Rich Starry, a medium-range tanker earlier known as Full Star, was blacklisted by Washington in 2023 for helping Tehran evade energy sanctions. It is not clear on this occasion whether it visited Iranian ports before its transit, or is carrying cargo.
Saudi Arabia Is Pressing U.S. to Drop Its Hormuz Blockade
The Wall Street Journal reports Saudi Arabia Is Pressing U.S. to Drop Its Hormuz Blockade
Saudi Arabia is pressing the U.S. to drop its blockade of the Strait of Hormuz and return to the negotiating table, fearing President Trump’s move to close it off could lead Iran to escalate and disrupt other important shipping routes, Arab officials said.
The blockade is aimed at raising the pressure on Iran’s already crippled economy. But the officials said Saudi Arabia has warned Iran might retaliate by closing the Bab al-Mandeb—a Red Sea chokepoint crucial for the kingdom’s remaining oil exports.
The pushback is a sign of the risks and limitations of U.S. efforts to pry open the Strait of Hormuz, which Iran shut early in the war by attacking ships in the waterway, cutting off around 13 million barrels a day in oil exports and sending futures prices above $100 a barrel.
The blockade of Iranian ports went into effect Monday after Trump’s threats of bombardments and talks over the weekend failed to persuade Iran to relax its hold on the Strait of Hormuz.
Saudi Arabia recently has been able to get its oil exports back up to their prewar level of around seven million barrels a day despite the blockage in the strategic strait by piping its crude across the desert to the Red Sea. Those supplies would be at risk if the Red Sea’s exit route were closed as well.
Iran’s Houthi allies in Yemen control a long stretch of coastline near the Bab al-Mandeb and severely disrupted the waterway for much of the war in the Gaza Strip. Iran is putting pressure on the group to close the chokepoint again, Arab officials said.
“If Iran does want to shut down Bab al-Mandeb the Houthis are the obvious partner to do it, and their response to the Gaza conflict demonstrates that they have the capacity to do it,” said Adam Baron, an expert on Yemen and fellow at New America, a policy institute in Washington.
Daily Reports
Hello Trump
This blockade will either be porous or increase prices or both.
Also see Fed Study Shows Tariffs Boosted Goods Inflation by a Cumulative 3.1 Percent
By the seventh month, the tariff cost pass-through to consumers hits 100 percent.
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The war and resultant inflation is what forced capitulation by Trump