Dan Graeber

There is a fascinating tidbit in this story that takes some of the bloom off the rose. Oil is flowing through the Gulf at pre-war levels, largely because the potential profits have increased (i.e., energy prices are higher). Traders and shipowners are willing to take the risk of an Iranian attack because if they can make it through the Strait unmolested, a bigger payday awaits. But that also means there is no downward pressure on prices, because while oil is flowing, the transport costs are so much higher. In short, until risk premiums fall—and ships don't have to worry about being attacked—oil prices will likely remain high.