0
Oh What A Tangled Web We Weave
April 12, 2026
Digby's Hullabaloo
Here’s CNN’s analysis of what they think they are doing which sounds right to me from what I’ve read: Iran’s decision to close the strait to oil tanker traffic has caused severe economic damage to some countries that rely on Middle Eastern crude, and it has led prices to surge around the world — including the United States. So why would Trump want to blockade the strait that he wants reopened? The strait isn’t technically closed — Iran has been gradually allowing some tankers through in exchange for a toll of up to 2 million per ship.
And, crucially, Iran has been allowing its own oil to pass in and out of the region throughout the war: Iran had managed to export an average of 1.85 million barrels of crude a day through March — about 100,000 barrels a day more than in the previous three months, according to data and analytics firm Kpler. By closing off the strait, Trump could cut off a key source of financing for Iran’s government and military operations. It’s a lever the administration has been unwilling to pull: Blockade the strait — even to Iranian oil, and the price of oil could surge around the globe. That’s why the US Navy has allowed Iranian tankers to pass through the region. Any oil flowing out of the region right now could help keep oil prices at least somewhat in check. In fact, the United States in March granted a temporary license for Iran to sell oil that had
Digby's Hullabaloo
Coverage and analysis from United States of America. All insights are generated by our AI narrative analysis engine.