Iran War Enters New Phase as Oil Markets Face Prolonged Disruption

The Iran war is entering a new phase, and oil markets are adjusting to a prolonged and unpredictable test of global economic endurance.

US President Donald Trump has predicted that the conflict will end after the US midterm elections on November 3, but recent developments suggest it may be very optimistic.

The Houthi rebels in Yemen have made rapid advances, tightening their grip on the Bab el-Mandeb Strait and announcing a naval blockade of shipping routes. Saudi Arabia's East-West oil pipeline was also temporarily shut after drone attacks from Iraq.

The disruption to Middle East oil exports has sharply eroded global stocks, with inventories falling by 507 million barrels since the conflict began.