US Israel attack on Iran may lead to hike in global oil prices; Iran may close Strait of Hormuz, how will it impact world?
US Israel attack on Iran: The US and Israeli attacks on Iran, followed by Iran's retaliatory actions, have caused a stir in the global oil market. This region supplies approximately 20% of the world's oil supply, so an escalation in hostilities could lead to oil shortages and inflation worldwide.
If tensions don't subside quickly, oil prices could rise sharply as soon as markets open on Monday. Crude oil prices recently reached nearly $70 per barrel, the highest in several months.
An explosion has also been reported near Iran's Kharg Island, where most of Iran's oil is exported. It's a matter of relief that there has been no major impact on ships transiting the Strait of Hormuz. This sea route is crucial for the world, as millions of barrels of oil pass through it daily.
The ongoing military conflict between Iran and the US-Israel has reached a very dangerous turning point. According to the latest reports, Iran has indicated it may close the Strait of Hormuz, the world's most important oil route. The Revolutionary Guards have issued a warning to ships in response to the attacks on Iranian bases on Saturday.
IRGC issued a stern warning to ships
Iran's Revolutionary Guards (IRGC) have issued a stern warning to ships via radio messages at sea. UK Maritime Trade Operations has confirmed that passage through this strategic waterway is now completely impossible. This move is believed to be a direct result of the recent bombings by Israel and the US on Iranian military bases.
Profound Impact on the World
The Strait of Hormuz is a route through which approximately 25 percent of global maritime oil trade passes. If this route remains closed for a long time, petrol and diesel prices around the world will skyrocket. The oil exports of countries like Saudi Arabia, Iraq and UAE are completely dependent on this narrow sea route.