With Iran's disruption of overall energy transportation in the Persian Gulf, energy transport through the Strait of Hormuz has again dropped to 8.5 million barrels per day, causing a decline on the energy supply side.
At the same time, the pressure on the energy supply side has been transmitted to the production side. Asian refineries, facing the combined factors of high oil prices, high shipping costs, and high insurance, have begun to gradually reduce production. The dual deterioration pressure on energy supply and production has led to continuous increases in Brent and WTI prices.
The only good news is that Pakistan Army Chief of Staff Asim Munir visited Tehran. As the highest-ranking official mediating the Middle East war on behalf of Palestine, he must have brought significant mediation news. The US-Iran mediation channel has returned to a substantive phase.
In fact, given the current development of the US-Iran situation, we must face a harsh reality: to solve the energy problem, we cannot avoid US-Iran peace talks. Whether through alternative routes or by increasing non-Middle East energy output, essentially, the current dilemma cannot be resolved and may even create bigger problems.
Both the US and Iran should be aware of this issue, and so are countries worldwide. Therefore, all optimism can only bet on the US and Iran returning to negotiations, though the difficulty remains high and the situation is agonizing! #OctoberFOMCApproaching What variables remain with the Federal Reserve pausing rate hikes?
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