Hormuz 'Victory' Hides Unsustainable Oil Crisis
The US has been claiming success in its efforts to increase oil flows through the Strait of Hormuz, but experts say this is a mirage. According to maritime intelligence firm Kpler, while crude oil and refined products are being transported at pre-war levels, this does not account for lost Iranian supplies or the ongoing collapse in refined product prices.
The operation, which costs an estimated $30 million per day, has temporarily alleviated pressure on Gulf allies' economies, but it is unsustainable. The US Navy operates around the clock with a 2,200-mile-long supply line due to Iran's destruction of the Fifth Fleet's headquarters in Bahrain.
Despite claims of victory from the White House and its allies, including CNN's Scott Jennings, who said 'We won. Iran lost. Period,' the reality is that this operation has only temporarily increased oil flows. Markets do not seem to believe that these hard-won oil flows represent a return to normal or that the operation is indefinitely sustainable.