Oil Plummets As NATO Mulls Hormuz Deployment If Strait Not Open By July

This article was originally published by Tyler Durden at ZeroHedge.

In a huge and unexpected announcement, amid stalled US-Iran peace talks, which have proven a failure and elusive thus far, NATO now says it could deploy military assets to forcibly reopen the Strait of Hormuz. Per breaking newswires Tuesday late morning:

NATO TO CONSIDER HORMUZ DEPLOYMENT IF STRAIT NOT OPEN BY JULY

President Trump has continuously chastised the NATO alliance for being largely bankrolled by Washington, but at the same time, fence-sitting when it comes to forming a coalition to patrol and reopen the vital energy transit waterway. Oil plummeted on the initial headline, seeing in it a positive for the potential that crude transit in the Persian Gulf could again be opened up soon:

And Bloomberg freshly reports:

NATO is discussing the possibility of helping ships pass through the blocked Strait of Hormuz if the waterway isn’t reopened by early July, according to a senior official in the military alliance.

The idea has support from several members of the North Atlantic Treaty Organization, but doesn’t yet have the necessary unanimous support, said a diplomat from a NATO country. Both officials spoke on the condition of anonymity. Leaders from NATO countries will meet in Ankara July 7-8.

But July feels very far away at this point, and anything could happen between now and then, as Washington continues to threaten renewed military action, and Iran says it remains on high alert.

NATO defense chiefs are meeting this week, where also be high on the agenda:

At this week’s summit, military chiefs from all 32 member states will examine the impact that consistent rapid consumption may have on NATO’s collective capabilities and deterrent power as Russia continues to threaten allies.