What is obvious is that America’s “complete control of the airspace” has not resulted in reopening the Strait of Hormuz – small Iranian missiles and drones remain a problem. Less obvious is that America’s “no limits on availability of munitions” presumably leaves Ukraine’s supply at risk, and Taiwan less protected. Oil prices are up by 25-30%, and inflation will follow unless this is very short-lived. Bond yields are rising globally. A regime-changed Iran (with free-flowing cheap oil for the world) would be a wonderful outcome, but is currently very far from assured. Jeremy explains the importance of Kharg Island…let’s hope it stays out of the headlines.
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