Fresh highs reached again this week as a peace deal and strait opening remain elusive. It appears now that US once again have been negotiating with a group who has no decision making authority whatsoever. As a 20 year Sales veteran, I feel their pain.
As we approach the end of the 60 day cease fire that wasn’t a cease fire, we might be entering a new phase of the conflict. With most Americans not in favor of the war or at a minimum tired of high fuel and ancillary prices, one could conject that Mid-term elections might play into our foreign policy. I would not go as far to say this is the new normal, as fundamental forces are looming. Gasoline demand is flat year over year, Diesel demand is down over 6%, and current retail pricing is unsustainable. The million dollar question has been asked for months, when will we pull back. Unfortunately it all hinges on when a deal will be struck that will open the Strait of Hormuz long term. And with mounting domestic political pressure, it could come sooner rather than later.