UK and Japan among countries that are considering options but yet to commit warships to blockaded shipping route
Countries including the UK, Japan, China and South Korea have said they are still considering their options but without making commitments after the US president, Donald Trump, urged them to send warships to the strait of Hormuz to secure the vital shipping route.
The effective closure of the strait of Hormuz by Tehran, in retaliation for airstrikes by the US and Israel, has proved catastrophic for global energy and trade flows, causing the largest oil supply disruption in history and soaring global oil prices.
However, the international response to Trump’s call for the dispatch of warships has so far proved vague and reluctant, with countries unwilling to commit to a military response that could prove treacherous for their navies.
Fuel prices aren’t going up at the moment because we have reserves. It’s likely that Trump will give up before those run out in 6 months time, so why risk the assets?
Local diesel prices in the USA have jumped $1.50 in two weeks. So far.
3 weeks ago I could get diesel at €1.60/l.
Now it is over €2 per litre and I am in the weird situation today I cannot fill my tank from empty because the bank does not pre-authorise enough. So fuel prices have absolutely gone up, at least to consumers in rural France, which is all I personally care about.
Fuel prices have gone up by about a third or more. I have no idea where you live but to me this just sounds plainly untrue, since other countries and economies are suffering. And about 20% of global production stopping is obviously a thing.