Iran Halts Diplomatic Exchanges, Diesel Futures Rise

 Well, that escalated quickly. On Friday afternoon tweets of lifting a blockade and free flowing ships had futures continuing their downward spiral. But a few hours later, it was announced that Iran cut off diplomatic exchanges with the U.S. until Israeli troops halted military operations within Lebanon. Tactic? Likely, but it still sent Diesel futures almost $.25 higher in the last three days and forced the U.S. to confirm the Israeli détente. Ship traffic through the strait is down to under 10% after being over 30% last week as Iran seems to still control flow. At home, it’s starting to wear on the average American as sentiment turns more negative after months of inflated cost of goods and services related to higher fuel prices. With a largely symbolic War Powers Resolution passed by the House yesterday, will it send a message to leaders to soften the stance and put an end to the operation? Without the redundancy of US barrels, it is hard to imagine what this would be like. Same goes for your Supplier, having one with redundant supply and hauling options will be critical should this extend further. I know one with 12 guaranteed supply positions and 100 company trucks on the road….