The ongoing closure of the Strait of Hormuz creates a catastrophic economic situation.

“We don't know how bad the effect of this is going to be down the road and how much more of this we can put up with. So, we do have to end our own blockade”

The blockade of the Strait of Hormuz is a necessary component of the strategy to pressure Iran.

“So, the idea that we have to remove this blockade because oil prices are high right now is absurd.”

Mark Gagnon believes the Strait of Hormuz is the most strategically important waterway on Earth because it functions as the central pressure point for the global energy system.

“This is the story of how the most strategically important waterway on Earth, a narrow corridor [music] between Iran and the Arabian Peninsula, became the single biggest pressure point in the global energy system.”

The current blockade in the Strait of Hormuz is primarily maintained through ambiguity and uncertainty regarding Iran's true military capabilities, which deters insurance companies from covering shipp

“The number one uh inhibitor of kind of maritime transit right now are actually insurance companies. Insurers are saying we're not going to ensure ships passing through that under these conditions. No way.”

The closure of the Strait of Hormuz is a unique, large, and physical supply disruption that cannot be resolved by market mechanisms alone.

“the closure of the straight of Hormuz is something that can't really be fixed by markets. It's so large and so physical.”

The Trump administration's contradictory rhetoric and policy shifts regarding the Strait of Hormuz demonstrate a lack of viable strategy.

“You've got a president here who is suggesting he's going to protect the Strait of Hormuz which is not an easy thing to do and quite likely would involve ground troops. At the same time he turns around and says he's going to start a war that isn't a war”