As Hormuz shipping lanes remain in a state of paralysis, rates to travel through the area are now over a million dollars a day. A year ago, tanker rates were around $100,000 per day. Easy to see the importance of the Saudi east-west pipeline that was shut down earlier in the week due to a drone attack. Even with the expectation that shipments will resume early next week, the cancellation of cargoes to Europe sent the market to new highs again. Again, we don’t have a supply problem, we have a logistics problem, albeit caused by military action. News and Social media take pieces of the ordeal that fit into the agenda but don’t tell the whole story. The US is still exporting almost 70 million gallons a day of diesel to buyers desperately looking to replace gallons lost that Mid-East shippers are unable to fulfill. The net effect is lower US inventories of finished diesel. A quarter point rate increase by the FED yesterday may be the start of some selling in the market, but that may be short lived. We are always willing to talk to help you navigate these times.