Strait Talk

Chief Strategists Marko Papic, Matt Gertken and Roukaya Ibrahim discussed:

• President Trump heads to China this week for critical talks with Xi Jinping that will focus on the war in Iran and global stability.
• If the US cannot offer significant strategic concessions for China's sphere of influence, then China may not join the pressure campaign against Iran.
• Meanwhile the "kinetic equilibrium" in the Persian Gulf faces renewed threats as the US and Iran trade barbs over how to restart shipping.
• The good news is that both sides are trading proposals — and the number of attacks has tended to decline since the April ceasefire.
• The bad news is that Iran remains unwilling to abandon its nuclear program, the US maintains its blockade, and Iran will attack US naval escorts of commercial ships.
• What will come of the US-China talks? Will Iran and the US manage to restart shipping? Can global financial markets continue to weather the Hormuz shock?