US EditionOil Markets Brace for Impact as U.S., Israel Attack Iran
U.S. and Israeli strikes on Iran risk disrupting 20 million barrels of daily oil flow through the Strait of Hormuz, a vital global energy chokepoint, analysts warn.
- On Saturday, U.S. and Israeli military strikes on Iran began major combat operations, prompting broader Iranian reprisals that increase regional escalation risks.
- U.S. and Israeli planners sought to degrade Iran's nuclear and missile programmes and weaken its leadership, while acknowledging they cannot fully eliminate one-off attacks or harassment by Iran's navy.
- Shipping sources report that approximately 20 million barrels pass through the Strait of Hormuz daily, with 9 million bpd at risk and 11 LNG tankers slowed or diverted, according to Kpler.
- Crude jumped almost 3 percent in New York and London; markets will open Monday, with OPEC possibly increasing output beyond about 137,000 barrels a day, traders said.
- Analysts warn that if Tehran feels cornered, Strait of Hormuz risks rise, potentially sending energy prices soaring and damaging the global economy, while CSIS projects price spikes over $90 and up to $130.
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27 Articles
Middle East Tensions Poise Global Oil Markets for Volatility
Middle East Tensions Poise Global Oil Markets for Volatility Recent military actions by the US and Israel have set the stage for significant turbulence in the global oil markets. With the implications for Middle Eastern oil supplies still unclear, experts predict price fluctuations next week.In a scenario where operations remain unaffected, prices might quickly stabilize after an initial spike. However, a disruption in oil infrastructure or tank…
Following the attacks of the US and Israel, Iran could once again threaten to block the Strait of Hormus – one of the most important routes for the world's oil trade. Blocking the Strait could push up prices and shake the global energy market.
US, Israel attack Iran in a joint operation: What does it mean for the global oil market?
The US and Israel launched strikes on Iran, raising risks to global oil supplies. Iran produces 3.3 million barrels daily and controls access to the Strait of Hormuz, a key oil route. Companies have paused shipments, heightening fears of disruption and rising crude prices.
The scenario of a blockade of the Strait of Ormuz, where one fifth of the world's oil supply is transited, particularly from Saudi Arabia and the United Arab Emirates, and even from a burning of the region, could cause black gold prices to take off.
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