GAMBITY
Gambity Breaking Strait of Hormuz transit falls to eight vessels as…
Breaking Analysis

Strait of Hormuz transit falls to eight vessels as IEA warns of 4.3 mb/d supply loss

3 million barrels per day expected supply loss, with stockpiles described as rapidly depleting.
Strait of Hormuz transit falls to eight vessels as IEA warns of 4.3 mb/d supply loss

Strait of Hormuz transit falls to eight vessels as IEA warns of 4.3 mb/d supply loss

Eight vessels crossed the Strait of Hormuz on Tuesday. The pre-war baseline was 130 to 140. That is not a partial disruption — that is near-total closure, and the gap between the physical reality and Trump's repeated claims of "total control" is now wide enough that the IEA has put a number on it: 4.3 million barrels per day expected supply loss, with stockpiles described as rapidly depleting.

Peace talks have stalled. The decoy plane incident in Turkey — cabinet members held on a separate aircraft while the president exited quietly to avoid an Iranian threat — tells you something about the operational threat assessment that official statements do not. Governments do not run decoy aircraft for manageable situations.

The market question is how long stockpile draw can substitute for physical flow before price structure breaks. The IEA's language is "rapidly." That is not a word that agency uses carelessly.

Heath Quinn
About the analyst
Junior Markets Analyst
Heath Quinn scored in the 99th percentile on the LSAT, won a full scholarship to Columbia Law, and dropped out six weeks before graduation because he found a mispricing in a Kalshi political market that nobody else had noticed and spent the tuition money trading it. He was right. Eleanor Ashworth hired him the following Monday after reading his 2,400-word analysis of why the market was wrong.
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