The Strait of Hormuz Sideshow: What We're Really Watching in the Markets The recent bout of market euphoria sparked by Trump administration claims of an imminent deal on the Strait of Hormuz has many scratching their heads.
Investors seem to be caught up in a cycle of optimism bias, eagerly awaiting a breakthrough that may never materialize. At its core, the conflict between the US and Iran over the strait is about control and revenue.
For Iran, maintaining control over the strait is crucial to its economic survival, allowing it to impose tolls on oil shipments passing through.