US Israel Iran War: In the wake of the Middle East crisis, oil prices have spiked to approximately $115 a barrel before they fell back slightly. The joint operations of Israel and the United States against the Islamic Republic of Iran have threatened the production, shipping, distribution and processing of crude oil.
Iran Blocks Strait Of Hormuz
The Iranian regime has been attacking oil fields in countries of the Middle East while restricting the movements of oil tankers across the Strait of Hormuz. Approximately 15 million barrels of crude oil that is close to 20 percent of the world’s oil is usually shipped on a daily basis via the Strait of Hormuz, as per independent research firm Rystad Energy.
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Several countries in the Middle East such as the United Arab Emirates, Kuwait and Iraq have decided to cut their oil production as storage tanks have filled because of the reduced capability to export crude. Meanwhile, Qatar’s energy minister Saad al-Kaabi remarked that the conflict in the Middle East could “bring down world economies.” This would put world economies such as India under a state of inflation as its oil import bills could surge up significantly. This would translate to an increase in price of almost every product, adding to monetary pressure, income disparities and a dropdown in gross domestic product.
Iran and Israel have been attacking oil depots while the United States has vehemently denied any role in attacking oil depots across the Islamic Republic of Iran.
US Israel Iran War-Impact On Global Brent Crude And US benchmark WTI Crude
Brent crude is presently trading at $107.20, an increase of 15.65 percent on the day. In contrast, US benchmark WTI Crude is standing at $103.18, an increase of 14.26 percent. Earlier in the day, Brent Crude surged to a staggering $119.5 a barrel after global markets reacted horribly to escalating geopolitical tensions in the Middle East region.
