US EditionIran War Throws Oil Market Into Biggest Crisis in Decades
Disruptions in the Strait of Hormuz and Iranian oil exports have pushed Brent crude up nearly 19% year-to-date, intensifying economic strain on Pakistan, experts say.
- Shipping disruptions in the Strait of Hormuz forced at least five giant tankers to turn back, while Brent crude settled around $72.5 a barrel on Friday, up nearly 19% year-to-date.
- Iran's IRGC broadcast warnings on February 28 that passage through the strait was not permitted after February 17 live‑fire drills, while late‑February strikes hit ports and civilian infrastructure.
- Satellite jamming is disrupting ship signals and raising collision risks, while insurers are cancelling cover; even at full capacity, 8 to 10 million b/d would remain exposed, Rystad Energy estimates.
- Pakistan faces rising import and inflation pressures, with a $5–$7bn potential annual deficit expansion if oil hits $100, while inflation rises 0.5–0.6 percentage points per $10 increase, says Waqas Ghani.
- A persistent risk premium could keep prices elevated as a $US8–12 per barrel risk premium persists and Strategic Petroleum Reserve limits constrain relief despite 415 million barrels cited.
21 Articles
21 Articles
The war in Iran is likely to be noticeable at the petrol stations very soon: the price of oil has recently gone up. Precious metals also became noticeably more expensive.
With the Gulf lighting up, oil emerges as Pakistan’s biggest economic risk
If the war between Iran and the United States escalates, the single biggest economic threat to Pakistan will come from oil. Brent crude settled around $72.5 a barrel on Friday, already up nearly 19 per cent year-to-date, according to CNBC. Rumours are swirling of oil touching $100. For Pakistan, even modest increases carry heavy consequences. For every $10 rise in oil prices, the current account deficit increases by roughly $1.5–$2 billion, expl…
The Economist
The West AustralianWar in Iran could cause the biggest oil shock in years
Prices will surge in the short run—and may stay high for a while | Finance & economics
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