Analysts are skeptical about Trump's TACO; abandoning the strait could trigger an even sharper rise in oil prices.

Ask AI · What deep disruptions could Iran’s control of the Strait of Hormuz trigger in energy markets?

[Analysts Doubt Trump’s TACO Deal; If He Walks Away From the Strait, Oil Prices Could Climb Even More Sharply] Caixin Media, April 1 (TASS). U.S. President Trump has made back-to-back statements this week indicating he is willing to end the conflict with Iran, even under conditions where Iran controls the Strait of Hormuz. This apparent concession has eased market tensions; U.S. stocks rose broadly on Tuesday, and Asian markets followed sharply higher on Wednesday. However, analysts are skeptical about Trump’s TACO deal (i.e., whether Trump would change his policy stance in response to market sell-off pressure), for one thing because of considerations regarding Trump’s historical trustworthiness, and for another because if Trump really makes such concessions, it would severely harm U.S. interests. Some people closely watching the market also point out that if Trump truly gives up the Strait of Hormuz, what deep disruptions could this cause in energy markets? Prices could surge even higher, because that would mean Iran would fully control one-fifth of global oil flows, which would make global energy markets even more unstable and turbulent.