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Culture War Roundup for the week of September 28, 2026

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Bloomberg: JPMorgan and Goldman See Mideast Oil Flows Near Pre-War Levels

Crude oil flows from the Middle East are returning toward pre-war levels despite continued risks to shipping, according to separate estimates from JPMorgan Chase & Co. and Goldman Sachs Group Inc.

“The Middle East’s oil export arteries are flowing again,” JPMorgan analysts including Natasha Kaneva said in a Sept. 29 note. That’s “a remarkable recovery for a region still at war,” although it’s been uneven, they said.

Shipments of crude oil have rebounded to 17.5 million barrels a day, or 98% of pre-war levels, while flows of products such as diesel and gasoline were at 3 million barrels a day, or 58%, according to JPMorgan.

Oil is passing coming through the Middle East again, at essentially pre-war levels. Some of this is from oil bypassing the Strait of Hormuz, and some of this is from oil transiting the Strait under American protection.

Flows through Hormuz have almost “returned to late-June highs of nearly 13 million barrels a day, led primarily by Saudi Arabia,” JPMorgan said. “But higher crossings should not be mistaken for improved safety — rather, they reflect the industry’s increasing ability to operate under sustained risk.”

Goldman Sachs, meanwhile, said oil exports from the Persian Gulf — including so-called dark flows moved clandestinely — had recovered to 23.3 million barrels a day over the last week, a level in line with the 2025 average.

Diesel and gasoline are still stymied, but, mostly, because Iranian exports are being blockaded by the US.

“We note a divergence between the fall of Iranian exports and the rise of exports of other Persian Gulf producers,” Goldman said. “Saudi estimated exports more than doubled in September and rose above their 2025 average.”

But other Gulf States are increasing their own exports to compensate for the missing Iranian piece.

It appears that the Iranians are not capable of stopping exports from flowing through the Straits, and so oil exports are returning to normal.


Meanwhile, Iran seemingly wants to end the war, although none dare call it "surrender":

New York Times: Iran Proposes 7-Day Plan to End War

Iran’s foreign minister said Thursday that Tehran had proposed to Washington a seven-day plan to cease hostilities, reopen the Strait of Hormuz and then begin comprehensive talks on his country’s nuclear program.

Abbas Araghchi, the foreign minister, told reporters at a press briefing at the United Nations General Assembly that the proposal closely mirrored the commitments laid out in a so-called memorandum of understanding that was struck between the United States and Iran in June but quickly unraveled.

He said Iran was ready to begin putting the plan into effect as soon as Washington agreed to it.

“We have introduced a plan to the United States through the intermediators that if certain conditions are met, the Strait of Hormuz would be open on the end of the seventh day and talks would restart,” Mr. Araghchi said.

He said “it would be better,” if a deal was reached before the U.S. midterm elections.

Iran wants, essentially, to return to something close to June's MOU, except on a faster timetable. Iran agrees to "reopen" the Straits in exchange for getting its confiscated $12 Billion, an end of the sanctions and blockade, and then to open discussions as to the future of its nuclear program.

Contrary to expectations that Iran is biding its time in hopes that Democrats will retake Congress, Iran says that it would prefer to reach a deal before the midterms.

Trump, however, is not interested:

AP: Iran indicates it’s received an official US response to its latest offer on ending the war

Trump swiftly rejected the proposal, saying Iran wanted to make a deal because it was “losing so badly” but that its offer “would not be acceptable.” Despite Trump’s public rebuffing, mediators continued working with Iran and the U.S. to try to broker a deal to end the fighting and open the strait, according to officials who were not authorized to comment publicly and spoke on condition of anonymity.

Meanwhile, the U.S. Treasury Department unveiled new sanctions on Tuesday targeting people and companies around the globe that it accuses of being financial facilitators or enablers of Iran’s military supply chain.

Iran prefers to call it a "win-win":

Iranian Foreign Minister Abbas Araghchi presented the U.S. response to President Masoud Pezeshkian at a Cabinet meeting, government spokesperson Fatemeh Mohajerani told the state-run IRNA news agency.

“We will make every effort to bring the agreement to fruition and will firmly stand up for the rights of the Iranian people,” Pezeshkian said. “The agreement must now be based on a win-win strategy.”


So, here's the current state of the war:

  • Shipping is moving through Hormuz and is increasing week-to-week. Total traffic out of the Gulf is approaching pre-war levels.

  • Iran has no ability to seriously threaten shipping in the Straits.

  • Iran is seemingly unable or unwilling to continue striking other American targets and assets in the Gulf

  • Iran remains blockaded and unable to export its own products, contributing to severe stress on the Iranian economy.

  • Iran is more interested in negotiating peace than Trump is.

Forgive me for repeating old arguments but I need to be clear about this: Trump was right about Iran and America is winning.

Oil is passing coming through the Middle East again, at essentially pre-war levels. Some of this is from oil bypassing the Strait of Hormuz, and some of this is from oil transiting the Strait under American protection.

So they claim, yet real prices are nowhere near pre-war levels. Reminds me of that old Stonetoss comic about Bitcoin.

Then: "Oil rises to $75!"

Later: "Oil CRASHES to $85!"

Later still: "Oil PLUMMETS to $95!"

All this without even mentioning that bond yields continue to soar despite Bessent burning billions in bond buybacks. At this point Trump's best chance to get prices back to normal is to hope for a global depression that kneecaps global demand sufficiently to make the Strait(s) irrelevant.

Meanwhile, Iran seemingly wants to end the war, although none dare call it "surrender":

I would dare, because it's basically an American surrender to expect all the sanctions relief up front, before any discussion of the nuclear issue. Trump obviously wasn't going to accept, the point was to make Trump look obstinate to the neutrals. "Look, we're reasonable but Madman Trump would rather crash the global economy than make any concessions!"

Contrary to expectations that Iran is biding its time in hopes that Democrats will retake Congress, Iran says that it would prefer to reach a deal before the midterms.

Uh, obviously the Iranians would prefer Trump give up immediately rather than having to endure two more months/years of fighting.

Regardless, the Iranians have already done enough to ensure that the Dems retake Congress. Kalshi has them at 91% for the House and 63% for the Senate. They're already predicted to win Republican strongholds like Texas (62%) and Alaska (70%). The only real question is whether they think they've hurt Trump enough politically to establish deterrence or whether they decide to escalate and give Trump an October Surprise big enough to flip Kansas and Nebraska too.

So they claim,

These are two analyses from JP Morgan Chase and Goldman Sachs, not the American government.

yet real prices are nowhere near pre-war levels.

Prices are falling. We would expect that the longer supply stays at pre-war levels the closer prices will get to pre-war levels too.

Regardless, the Iranians have already done enough to ensure that the Dems retake Congress. Kalshi has them at 91% for the House and 63% for the Senate. They're already predicted to win Republican strongholds like Texas (62%) and Alaska (70%). The only real question is whether they think they've hurt Trump enough politically to establish deterrence or whether they decide to escalate and give Trump an October Surprise big enough to flip Kansas and Nebraska too.

Fantasy world political predictions. It would sound more reasonable if you just said you thought Democrats were going to take the House.

Fantasy world political predictions.

Yet those are the actual odds presented by the most accurate forecasting method we have. Maybe if the public has turned against the Trump admin so much that the electoral odds look like fantasy, it should be reason to self reflect on those failures that brought us here? Maybe one of the most unpopular wars in history was a mistake and no amount of propaganda changes that.

And as always with prediction markets, if you don't believe them, then go bet against it and make a lot of money.