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Iran Is Staking Everything on Controlling the Strait of Hormuz
(Wall Street Journal) Omar Abdel-Baqui - By asserting authority over the Strait of Hormuz, Iran's leadership is betting that its ability to inflict pain on the American economy is its best leverage to avoid future military action from the U.S. and Israel. Tehran believes Trump will ultimately accept its terms ahead of fast-approaching midterm elections. Yet even though Persian Gulf oil flows having fallen to 36% of prewar levels, oil prices never reached sustained levels above $100 a barrel. Even with the Iran-backed Houthis bottling up Saudi oil in the Red Sea, crude prices were below $80 a barrel Tuesday. Iran's own oil exports rely on the passage through Hormuz. Long-term disruption deprives the Islamic Republic of its primary revenue stream while accelerating efforts by neighboring Gulf states to build bypass routes. China, one of Iran's most important partners, has dialed back oil purchases, keeping prices down. Yet countries are depleting their stockpiles at record rates.