The Trompholmuz billing scheme raises oil supply risk concerns

President Trump ' s plan to levy a 20 per cent levy on goods passing through the Strait of Hormuz could threaten global oil supplies, especially in the event that the conflict could once again close this critical waterway. According to the analyst, the proposed charge is not only a direct cost but, more importantly, a signal it conveys: a disruption in transport may lead to a shortage of supplies and subvert earlier projections of surpluses. According to Andy Lipow, Managing Director of Lipow Oil Associates, the market had hoped that the memorandum of understanding between the United States and Iran would lead to a stronger supply, but optimism had diminished. He estimated that a levy on crude oil cargo would increase the cost of transporting oil per barrel by approximately $16. Citi warned that the implementation of the cost could increase the risk of a recent military conflict, and the analysts believed that the risk of military escalation would increase significantly if the announcement were implemented。