Overview
- Bloomberg columnist Javier Blas publicized the trader-coined term “NACHO,” which stands for “Not A Chance Hormuz Opens.”
- The Strait of Hormuz has been effectively closed since late February after U.S.-Israeli strikes on Iran and ensuing retaliation choked off maritime traffic.
- Oil prices have jumped, with Brent crude trading above $114 a barrel and West Texas Intermediate above $103.
- President Trump posted an AI-generated image with a warning to Iran to “get smart soon” as efforts to restart talks were reported to have stalled.
- Before the conflict, the strait carried about one-fifth of global oil supplies, so a prolonged closure threatens energy security and raises costs for shippers and consumers.