With the announcement of a peace deal with Iran, a question I’ve heard asked: Now that the Strait of Hormuz has reopened for thousands of vessels, will they be enticed – or even welcomed – to return to business as usual?
As for gas prices at the proverbial pump, there is a “rocket and feather” theory proffered by Michael Hiltzik at the Los Angeles Times. While the price of gasoline rocketed up dramatically with each day’s bad news, how long will it take for those prices to drift down like a feather?
Gasoline prices can – and usually do – rise on facts or rumors about future oil prices per barrel. With supplies of expensive gasoline still in underground storage tanks, pricing will not likely start to fall until that supply is replaced by cheaper incoming deliveries, priced based on what suppliers and refiners paid on the international spot market.
But here’s the thing: Netanyahu is not averse to restarting his bombing campaigns in Iran and Lebanon – and that would probably shut down the Strait of Hormuz yet again. That is a certainty Trump’s big deal must contend with.
Patience may be all we have left.
Dave Ohman
Durango