Thinking about this last night, so now we have a, potentially, more hardline leader in Iran. Have we moved past a potential off ramp for the foreseeable future?
Iran has no reason too stop being belligerent toward the oil traffic in the straight. If anything, the more pain they cause there, the quicker the USA and its gulf allies look to end things, right?
I guess we have no real idea what Trump's tolerance for >$100 barrel oil is. In the past I'd have said low, since he only ever seems to pull back when the markets make it clear he needs to. But this feels like it might be beyond his ability to do. If energy prices stay super high, and bond yields keep going up, how the hell will this not induce a recession at home? How long can these price levels and this much uncertainty in global energy be tollerated?
And at the same time, even if the USA went home this afternoon, how does that not embolden Iran to keep doing what it's doing? There has to be a diplomatic resolution here or there's no reason for Iran to stop messing around, right? How do we even get to diplomacy w/o boots on the ground?
I'm genuinely asking. I really can't get a feel for how this unfolds, like, what's even likely?