US Economy Thrives Amid Blockade, But Europe Suffers

The Strait of Hormuz has been blockaded for three weeks, with both the US and Iran continuing to use force and threats of violence against each other.

This stalemate is building up economic pain for the US and its allies, with Brent crude prices at a new high for this year and 2027 prices also elevated.

Financial markets are behaving as though the war is over, which is a critical advantage for the US. The blockade is seen as working by starving Iran of exports, forcing it to run out of storage capacity, and capital flight.

However, Europe is losing from the impasse, with European stocks selling off as the US has rebounded.