Persian Gulf oil flows return to prewar levels, but Iran could resort to a ‘scorched earth campaign’ as U.S. deploys more ships and Marines to Mideast

(Credit: U.S. Marine Corps photo by Sgt. Mary R. Jenni)

Iran is losing leverage over the Strait of Hormuz as oil exports recover under the protection of the U.S. military, but the Islamic Republic is unlikely to stand by and watch while its own economy crumbles.

This past week, JPMorgan said Middle East crude exports reached about 17.5 million barrels per day, or 98% of prewar levels. Goldman Sachs was even more bullish, estimating that exports from Persian Gulf producers hit 19 million barrels per day.