Hormuz Risk Underpriced as Standoff Drags On With No Resolution in Sight

The source argues markets continue to underestimate the risk around the Strait of Hormuz, noting that despite widespread belief that the economic cost is too high for the standoff to continue, seven months have passed with no progress and no scalable alternative routes.
The source contends the situation is existential for all parties involved, making a quick resolution unlikely, and that the stakes extend beyond oil to fertilizer, sulfur, and LNG, all of which flow through the chokepoint. The source warns markets are being held up largely by excessive complacency, and that a violent repricing should be expected once that fades.