President Donald Trump is betting that the ongoing negotiations between the U.S. and Iran over the Strait of Hormuz, which remains closed, could create unintended consequences. Wolfe Research warns that unless the blockade succeeds at forcing Iran to capitulate, it could extend the closure of the Strait for weeks or months and take Iranian oil supply off the market. This could lead to increased oil prices and a return to violence if the blockade continues for too long. The situation is less concerning now, but the longer the strait is closed, the higher oil prices.