Citi released a research report saying that US President Trump announced that it will re-implement the blockade against Iran and levy a 20% “security guarantee” fee on all cargo passing through the Strait of Hormuz to subsidize the cost of ensuring the safety of shipping in the region. If this move is implemented, the risk that the situation between the US and Iran will escalate significantly. The possibility that Iran will withdraw from the memorandum of understanding before the US midterm elections will also increase, which may cause oil prices to remain high for a longer period of time. The bank currently basically predicts that the two countries will return to diplomatic negotiations within one to two weeks, and the oil price forecast will remain unchanged until then.

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