May. 20 at 10:40 PM
$DHT $FRO The gist that I got from the video was that the closure of the Strait of Hormuz in itself may actually be the reason for the recent bearishness, or put another way, the rise in tanker stocks we've been seeing since the beginning of the year is mostly the result of market dynamics (Sinokor buying up lots of tankers, for example), and not due to the building up of tensions with Iran. The closure is being perceived as a negative, probably due to reducing business as a whole. This would align with prices peaking and declining or going sideways since the start of the war.
I think the reopening of the strait will ultimately be the catalyst for a strong move higher, because the current rate environment isn't going to come crashing down just because of those sitting ducks getting unleashed upon the oceans. On the contrary, the reopening will bring back a large amount of business, with the "shadow fleet" remaining severely depressed from the whole seizing and sanctioning ordeal.
