Oil prices continue rising with US-Iran standoff

Oil has once again topped $90 a barrel as the stalemate over control of the Strait of Hormuz continues. The 60-day Memorandum of Understanding between Iran and the US officially expired this week. The MoU was largely moot at this point since hostilities had resumed before even a month had passed. However, the negotiations that were were take place over those 60 days seem no further along, at least between the US and Iran.

Talks have progressed between Iran and Oman, owner of the territorial waters on the other side of the Strait. The two sides said earlier this week they were composing a joint declaration, which may provide further clarity on the deal taking shape. Reportedly, the Iran-Oman deal calls for commercial ships to enter the Strait on the Iranian side and exit on the Omani side.

On Monday, President Trump made his displeasure over the deal apparent when he threatened to “bomb the shit” out of Oman, a US ally. Iranian officials have told the press that they will also assume a more aggressive military posture if the US does not honor its commitments in the MoU. Two of those key commitments include lifting sanctions and ending the US naval blockade of the Strait. The MoU also called on the US to rein in Israel’s aggression against Lebanon. Mohsen Rezaei, the newly-appointed Secretary of Iran’s Supreme National Security Council, issued a statement last week expanding that demand to include Gaza, where Israel has stepped up bombings and killings in recent weeks. Israel also struck a Syrian airbase this week, drawing ire from the US envoy to Syria and Lebanon.

In a potentially devastating blow to farmers and consumers, “Diesel crack” over $100 for first time due to Hormuz crisis.