Oil Flows Through Iran War Despite Soaring Prices

When Iran shut down the Strait of Hormuz at the start of the war, many feared that oil prices would skyrocket and crash the global economy. However, nearly seven months on, oil is expensive but not exorbitant, with prices around $100 a barrel.

The Gulf nations have found ways to keep oil flowing through the Iran war by using alternative routes and pipeline capacity. Saudi Arabia and other Gulf producers quickly turned to their East-West pipelines that carry oil to their Red Sea ports, while others used existing commercial oil stocks to meet global needs.

While Iran's leverage has been diminished due to the US naval blockade and tightened sanctions, the workarounds are expensive and may not be sustainable. The drawing down of existing commercial oil stocks cannot continue indefinitely, and Iran could yet gain an edge with continued attacks on key oil facilities.