Beijing’s Silence Is Fueling the Hormuz Crisis
The Xi–Trump summit failed to deliver any concrete plan to stabilize the Iran crisis or reopen the Strait of Hormuz, exposing deep U.S.–China divisions over energy security and maritime stability.
It's about time someone in the MSM said out loud what EVERYBODY KNOWS, which is that oil shipping is NEVER going back to the status quo antebellum. Hormuz is just the tip of the iceberg, there are numerous places on shipping routes where tankers can be threatened with Piracy or interdiction. China certainly will not accept the FSoA blockading Iranian Oil from heading to Chinese ports over the long term. On the other side, as long as Iran can sell its Oil to China, Trumpolini's blockade doesn't fulfill the intended purpose of starving Iran of funds. Who gets the oil produced anywhere but inside their own borders is now subject to the political vicissitudes of who is aligned with who. The possibility of wars escalating past the Proxy War level has increased by orders of magnitude. Xi made that clear in his statement about the Taiwan situation.
It's hard to figure how the new reality will be priced in to the cost of shipping insurance and then further to the price of oil. A single market price for delivery is no longer possible, since each route has a different level of risk associated, and each transaction depends on who the buyer & seller are & where the vessel is flagged. Needless to say, that makes for a very confusing market situation, and even without overt hostilities in play energy movement around the globe will be seriously impacted.
It's a whole different world now, and there is no going back.
RE