Global Oil Supplies Under Pressure as Conflict in West Asia Escalates

The ongoing conflict in West Asia has escalated, affecting global oil supplies as Saudi Arabia, the world's largest oil exporter, has been targeted. The Strait of Hormuz, which carried 20% of global oil supplies, including 15 million barrels of crude oil and 5 million barrels of petroleum products, has been closed since February 28.

The disruption in supplies could intensify further following the signing of the Lindsey O Graham Sanctioning Russia and Iran Act by President Trump. The act targets countries that continue to trade with Iran, including India, which is the second-largest buyer of Russian crude oil.

Saudi Arabia can continue to export 4 million barrels of crude oil through the East-West pipeline, while the UAE exported 1.5 million barrels through the Habshan-Fujairah pipeline, allowing both countries to partially circumvent Hormuz.