Tense negotiations over the Strait of Hormuz are stalled, risking an energy shock that is already creating political fractures in the U.S. ahead of the midterms. The White House is now scrambling for options as diesel prices bite.
The tape Bloomberg Surveillance · Sep 28
“Going into the U.N. That there might be some real meaty talks to at least get another MOU or a ceasefire. It's just not in the works. And the core holdup is, to my mind, Article 5 of the MOU that the president agreed to this summer, which gives Iran control of the Strait of Hormuz to negotiate a working arrangement between on tax policy with Oman to have an understanding that there is a way to get ships through the strait that they are in part involved with. As long as Iran is involved with ships getting through, you have tankers, insurers, farmers, banks that have to coordinate with a designated entity, the Islamic Revolutionary Guard. And that is untenable for a Western democracy and a Western economy as we're seeing play out in our elections in real time right now.”
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