Commodities
US and Iran Struggle to Resolve Key Issues in Ongoing War
The US and Iran are seeking a deal to end their four-month war, but several key issues remain unresolved.
The closure of the Strait of Hormuz by Iran has caused an oil supply shock, driving up fuel, food, and fertilizer prices. The strait normally handles around 20% of global oil and liquefied natural gas shipments.
Reopening the strait is a top priority for Washington, while Tehran sees it as its main point of leverage. However, it may take time to resolve this issue due to the presence of many stuck vessels in the Gulf and Iranian sea mines that could be difficult to locate.
The US blockade on Iranian ports has also hit Iran's exports and state revenue, with lifting it being one of Tehran's main goals.