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Dramatic turn in the Persian Gulf
Note the latest report from the Middle East that is causing a real stir,
Saudi Arabia and Kuwait have decided to lift the restrictions they imposed on the American military,
They are once again allowing the US to use their bases and airspace for the operation called 'Project Freedom'.
This is a very significant change of direction, after we heard only at the beginning of the week that these countries had blocked access for Americans, which hampered the US's ability to carry out military operations aimed at reopening the Strait of Hormuz,
Now that the blockade has been lifted, President Trump is considering reactivating this project immediately.
Here are a few important points to understand about the situation:
The American operation in the region relies on the use of a very large fleet of aircraft,
These aircraft are intended to protect commercial vessels carrying goods and oil,
The bases and airspace of Saudi Arabia and Kuwait are critical – without them, it is very difficult to carry out an operation of this magnitude.
As soon as this news broke, oil prices in the US began to jump, because traders understand that military action is becoming a real option on the table.
We may see rapid progress in troop deployment, which will continue to affect crude oil price charts in the near future.