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Iran bets US will accept control of Strait of Hormuz
The outlet says Tehran views limited US arms stocks, US election pressure, and potential disruption from Yemen as factors that could keep energy prices elevated.
SCMP Economy reports Iran is betting that military pressure will ultimately push the United States to accept Iranian control over the Strait of Hormuz, a key waterway for global energy.
According to the report, Tehran’s calculation is shaped by what it sees as dwindling US arms stockpiles, inflation worries, and the political pressure ahead of November US congressional elections.
The report also highlights that a largely closed strait would keep the price of petrol and other goods high, while any attempt to open it by force could be costly and may require American ground troops.
SCMP Economy further notes that Iranian leaders believe their Houthi allies in Yemen could widen the war and disrupt another major trade route.