"Iran’s regime has lost control of the Strait of Hormuz," Swiss energy analyst and investor Alexander Stahel declared in his Monday morning investment letter The Commodity Compass.
asserted
Stahel → lose → letter
Stahel followed up his assertion with a 1,200 word description (excluding maps and charts) of how the operation that he describes as "the Hormuz shuttle" got stood up and is now running massive quantities of oil out of the Arabian/Persian Gulf to an oil-thirsty world.
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he → follow → world
He has an "X" account where he posts under his own name and links to his newsletter.
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he → have → newsletter
First, the United Arab Emirates and then its neighbors developed an enormous system to shuttle oil out of the Gulf via a new shipping channel which hugs the Omani coast and which is patrolled and protected by the United States military.
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which → develop → military
Central Command isn’t replicating the destroyer-heavy escort system of decades past when Iran threatened the Strait, but its new tactics are effective and the September decline in the price of oil demonstrated that, as October’s anticipated decline will as well.
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decline → replicate → that
Stahel writes: "The key development over the past month was the UAE's refusal to become hostage to Iran's regime.
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development → write → regime
Instead, it established what I describe as the ‘Hormuz Shuttle’."
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I → establish → Shuttle
It started early.
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It → start → ?
Already back in May, it placed eleven hulls — mostly VLCCs [very large crude carriers], owned, leased & operated by
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it → place → hulls
ADNOC [Abu Dhabi National Oil Company] — to get the risky job done of shuttling crude out of the Persian trap via the Oman Lane into the Gulf of Oman, unloading it via Ship-to-Ship (STS) transfer and then re-entering the Persian trap to repeat the trade.
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job → get → trade
The detailed assessment focuses on the key exporters: "ADNOC has become very good at the Hormuz Shuttle, Aramco [Saudi Arabia’s state-owned energy giant] and Kuwait have learned from the UAE and copied the model.
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Aramco → focus → model
By now, we have some 116 hulls active in the Shuttle trade around the Strait of Hormuz, most of them using the Oman Lane."
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most → have → Lane
The assessment is that Qatar and Iraq are also now using the "Hormuz Shuttle."
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Qatar → use → Shuttle
"Iran has failed to shut the Strait,"’Stehal concludes, "the shuttle system is scaling, and time is increasingly working against Tehran.
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time → fail → Tehran
At this writing, West Texas crude — critical to the American market — is at $94.50 a barrel and Brent just under $107.00 as the world’s commodity traders worry that President Trump rejected the Iranian overtures to reopen talks.
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Trump → worry → talks
That bump-up in prices will fade as Iran proves incapable of stoping or even scaring any of the participants in the "Hormuz shuttle."
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Iran → fade → shuttle
The price will continue to fall as more and more traders and buyers realize that Iran is out of cards.
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Iran → continue → cards
President Trump has joined Prime Minister Netanyahu in a posture made famous by Clint Eastwood: "Go ahead.
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Trump → join → Eastwood
Every attempt to bully Trump has brought exponential response from the American military.
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attempt → bully → military
Iran hasn’t tried that in weeks.
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Iran → try → weeks
It’s flat out afraid of Israel as they know Bibi would love to be provoked right now.
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Bibi → ’ → Israel
Every country that depends on the Strait of Hormuz has its oil export-driven cash flow up and running at around 80-90% of the January rate.
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flow → depend → rate
The IRGC has spent six months flailing itself into a corner from which there is no escape without President Donald Trump’s ok.
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IRGC → spend → ok
President Trump is unlikely to give away his hard won leverage over the killers in Tehran absent genuine concessions on their part of the sort that signifies the rump regime really has thrown in the towel on its nuclear ambitions and missile program.
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regime → give → ambitions
The first meaningful step would have to be opening all of the devastated nuclear program sites to inspection by the International Atomic Energy Commission as well as the caverns and tunnel at Pickaxe Mountain.
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step → have → Mountain
More important than verifying for those afflicted with Trump Derangement Syndrome that Iran’s nuclear ambitions have indeed been obliterated, is the lifting from the world not just of the premium imposed on the cost of energy by the battle with Iran that began in February but the lifting of the "mullah tax" that has burdened the world’s economy since 1979.
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that → verify → 1979
Markets price every factor and possible factor into the cost of every good.
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Markets → price → good
The world has been paying a "mullah tax" since the Shah of Iran went into exile and Ayatollah Khomeini returned from his.
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Khomeini → pay → his
Once the nature of the regime was fully revealed to the world, the risk of what an irrational group of religious fanatics would do with Iran’s incredible wealth of natural resources and an educated population has weighed on the world’s economy.
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group → reveal → economy
Israel paid the highest price, of course, as it was obliged to prepare for battle on many fronts, all of those threats financed by the fanatics in Tehran.
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all → pay → Tehran
The Israelis have long known they were paying for Iran’s religious fanaticism, but the rest of the world played the role of the frog being boiled to death slowly.
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rest → know → death
Had Iran achieved a nuclear breakout, the cost of the "Iran tax" would have skyrocketed as the region’s blackmailer became even more bold in its demands.
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blackmailer → achieve → demands
President Trump and the American military, assisted by the Israelis and now by our Gulf allies, had enough of the low-grade blackmail that had stretched over decades and the ever-increasing threat of much worse.
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that → assist → worse
Operations Epic Fury and Roaring Lion pummeled the Islamic Republic in the spring.
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Fury → pummel → spring
The third string rulers — the most talented of the Iranian leadership, were eliminated in the opening strike of the war —
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rulers → eliminate → war
could have accepted the loss of one part of the regime’s strength and abandoned its nuclear ambitions, but instead the retirees from the revolution’s glory days who were called off the bench to helm the crippled regime doubled and tripled down on fighting the world’s greatest military as well as Israel’s and some of the Gulf’s forces — and lost.
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who → accept → forces
Now the American naval blockade has combined with the American shield over and around the "Hormuz Shuttle" to bring Iran to the United Nations General Assembly to beg for negotiations on its sideline and on American cable news.
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blockade → combine → news
President Trump wisely rejected the desperate appeals, noting only that Iran had "overplayed its hand."
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Iran → reject → hand
At the same time as the "Hormuz Shuttle" scaled and brought relief to the world’s oil markets, Treasury Secretary Scott Bessent took the lead in part two of President Trump’s drive to collapse the ability of the Islamic Republic to threaten anyone in the region.
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Bessent → scale → region
American sanctions went from a "6" to an "8."
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sanctions → go → 8
…and 16 more, not listed.
The Aporia
