Those that believe that the global energy crisis is going to be magically solved by a “memorandum of understanding” that is already being violated by both sides are going to be in for a very rude awakening. As you will see below, the Iranians have continued to launch drones at commercial vessels in the Strait of Hormuz. How are shipowners and insurance companies supposed to feel comfortable while this is going on? In the “memorandum of understanding”, Iran agreed to allow commercial vessels to travel through the Strait at no charge for a period of 60 days. Hopefully that will actually happen. After the 60 day period is done, the Iranians have already announced that they are going to go back to charging ships to pass. Any ships that do not pay up will be subject to attack. Meanwhile, global oil supplies will just continue to get tighter and tighter.

Read more: U.S. Oil Stockpiles Fall To Critically Low Levels As Iran Continues To Mess With The Strait Of Hormuz