Trump announces deal with Iran: Strait of Hormuz blockade to end

Trump announces deal with Iran: is the Strait of Hormuz blockade over?

Is the standoff at the Strait of Hormuz finally over? Donald Trump has announced an agreement with Iran that immediately lifts the naval blockade Tehran had imposed on the key shipping route for oil transit. The announcement, made without the usual White House filters, has triggered a wave of reactions in the markets and among analysts: from euphoria over an imminent oil price collapse to skepticism from those who recall that the New York tycoon is hardly a paragon of credibility.

Cheap oil and a new energy map

The fall in crude prices seems unstoppable. On top of the United Arab Emirates leaving OPEC — pumping 5 million barrels a day — and Venezuela's increased production now comes the removal of the world's main supply bottleneck. Advocates of collapse theory, like Antonio Turiel, who predicted $150 a barrel, watch their forecasts crumble. Meanwhile, electric car sales keep breaking records, putting even more pressure on fossil fuel demand. For Russia, whose economy depends on oil and gas, this cocktail is lethal: it is on its deathbed with its economy in collapse, according to some participants in the debate.

But in Spain, prices aren't falling

Despite the rout in crude on international markets, there are antiestéticars the drop won't reach Spanish pumps. "Prices for everything will keep going up here," complains one user, referring to the lack of competition and the taxes loaded onto gasoline. Distrust of Trump's announcement is another recurring theme: many doubt the reliability of the US president, whose previous deals with Iran never went beyond gestures with no trinc-through. "Do you still take that man seriously?" another commenter quips, summing up the mood of part of the analyst community.

In any case, the diplomatic move opens a window of uncertainty. If the deal holds, Iranian crude would flow back to the markets, pushing prices down even further. If not, the blockade will keep straining a rope that is already creaking. The only certainty is that cheap oil doesn't suit everyone.

Most shared

Related discussions on the forum

• BOOOOOOOM Trump says the United States will blockade all ships "entering or leaving" the Strait of Hormuz UPDATED 10 MINUTES AGO · 362 replies
• Antonio Turiel is in his bulking phase · 27 replies
• "Closing Hormuz won't end mass tourism, but travel will be less frequent and more expensive" · 36 replies
• And Antonio Turiel was right, damn it. · 263 replies