What Trumps New Iran Blockade Could Mean for Oil Prices

President Trump’s first naval blockade on Iranian ports in April caused oil prices to rise, but not to the stratospheric levels some feared.And Tehran’s oil exports plunged, depriving Iran of billions in revenue.The strategy may be harder to pull off a second time without inflicting broader collateral damage to markets.U.S.

oil reserves, which have been steadily drawn down since the start of the war to help combat global shortages, are now at their lowest levels since 1983.Commercial inventories also have been run down.

And other oil-producing countries in the region may have a harder time getting their ships out because of the heightened risks.Another wild card is China.Usually the world’s largest oil importer, China has been helping to keep oil prices at bay by significantly decreasing imports of crude.

New data on Tuesday showed that pattern held at least through June.But China might not continue on that path.“We have now run through all of the buffers which helped moderate oil and natural gas and to some extent fertilizer and helium prices for the first three or four months of the war,” said David L.

Goldwyn, a former U.S.diplomat and Energy Department official.A month after signing a truce, Iran and the United States have slid back to open warfare.

Conditions around the Strait of Hormuz, a vital waterway for oil and gas shipments, have deteriorated significantly after days of back-and-forth strikes.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe....