TRUMP REVEALS IRAN'S REAL GAME IN THE STRAIT OF HORMUZ
Iran makes roughly $500 million daily from the Strait of Hormuz staying open, according to Trump. Closing it would mean Iran loses that revenue stream entirely — a massive economic pressure point in any negotiation.
This reframes the whole Middle East energy situation. If Iran's leverage is actually its dependence on keeping shipping lanes open, then the calculus changes entirely.
Oil markets should be pricing in a lower probability of actual Strait closure. The economic incentive for Iran to keep things flowing contradicts the war rhetoric we've been hearing.
That said, accidents and miscalculations still happen in tense waters. But if Trump's reading is correct, this is about posturing over economics — and economics usually wins in the end.
Which side of this are you on — do you think geopolitical risk is overpriced right now?