Keep pulling the thread on Javier.
The US is using a naval blockade to exert maximum financial pressure on Iran. While costly for Tehran, the strategy's effectiveness is limited in the short-term by Iran's financial cushions and ability to store oil, making a quick diplomatic resolution unlikely.
The UAE's departure from OPEC+ signals a major shift in the global oil order. This move sets the stage for a future production rivalry with Saudi Arabia and may encourage other members like Kazakhstan and a post-regime Venezuela to exit.
The closure of the Strait of Hormuz has underscored the vulnerability of global energy supplies. Saudi Arabia and the UAE are mitigating this risk with existing bypass pipelines, and the crisis is expected to spur a new wave of pipeline construction across the region.
The physical limits of oil storage are a primary driver of production decisions during the blockade. While Iran has some runway, other Gulf producers like Kuwait and Iraq have already been forced to shut in wells after reaching storage capacity.