Evening Briefing Europe

Iran Ceasefire Fails to Reassure a Global Economy on Edge

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US Navy ships enforce blockade operations in the Arabian Sea on April 16.Source: US Navy

A tense ceasefire may be in place between Iran and the US, but with no peace talks on the horizon and with both sides enforcing oil blockades, it’s hardly reassuring for a global economy on edge.

Besides blocking the Persian Gulf, the US is also boarding carriers thousands of miles from Iranian waters, depriving Tehran’s customers, by far the biggest being China, of millions of barrels of supply. Iran, for its part, continues to keep the Strait of Hormuz effectively closed, preventing the passage of hundreds of millions of barrels of oil and fuel as well as other commercial traffic.