The USA is withdrawing from its failed attempt to use force to keep the Straits of Hormuz open, as no other country, even allies, really believe it will succeed. Not with the costs for escort ships factored in and even insurance provided by the USA. The risk is too great for shipowners, and some are not even wanting to trust the ability of the USA to uphold its insurance provision stance, asking how long it is going to take to be compensated after lodging a claim. The trust in the USA is gone, and ship owners know that for a fact.
The UK is now caught between a rock and a hard place, having tried to be involved in the Iran War by sending military logistics to Cyprus and attempting to send its bathtubs to support Trump and getting insulted in the process. Other European states have stayed away, so Iran will probably not be treating them the same as the UK when the USA departs from the Straits of Hormuz. Trump is adding insult to injury by telling the UK to get its oil on its own.
Having said that, the USA is not completely unaffected as far as oil from the Middle East going through the Straits of Hormuz. The USA still has to import oil for its refineries; the so-called heavy crude as opposed to the light crude that it produces itself, in abundance. The cost of refitting its refineries to accept its own light crude is too expensive, costing billions for each refinery, which prevented the conversion over the years.
So, let us see what happens.
Anonymous
Well sinkieland better prepare to volunteer Keechiu to lead a navy team to Hormuz. There are also lot of sinkieland ship that pass through there, so who is better than our very best Keechiu to protect these ships. As he had the power to turn sheep to produce cotton. Imagine what he can turn those attacking Iran drone into?
ReplyDeleteTrump is still showboating about using force to keep the Straits of Hormuz opened, on the heels of the talk by the Europeans about getting into the act of using their own naval force to wrestle control of the Straits of Hormuz from Iran. How are they going to do that? It will be an exercise in futility.
ReplyDeleteThere were also talk about investing US$200 billion to cut a channel across Oman to avoid the Straits of Hormuz. How about the other problem to be faced by ships sailing within the Persian Gulf that Iran can always target?
Iran's stranglehold control is not just the Straits of Hormuz. It is the whole Persian Gulf per se. The whole coastline of Iran faces the Persian Gulf, where underground bunkers hosting drones, missiles and speedboats are hiding. Furthermore, we have not factor in the possibility of Iran mining the Persian Gulf, not carpet mining, but with sporadic placement of mines. Taking out just one tanker is going to send jitters to shipowners and marine insurers.
Iran is refusing to hold talks in Pakistan. This is probably the fear that Pakistan is unable to provide the security for the safety of its negotiators, just like what happened with Hamas leaders holding talks in Qatar.
Suffice to say, amidst all the boasting and propaganda, the war is not going to end soon. Trump has been switching it on and off while Iran has stuck to its guns that no negotiating is ongoing. Iran has taken leaf from the Chinese by making no comments, just letting Trump fart about done deals and making a fool of himself.
It is ironic that countries are still blaming Iran over the closure of the Straits of Hormuz. Who started the war that led to the closure? Without the war, would the Straits of Hormuz be affected?
ReplyDelete