Oil Markets on Edge as Two Critical Chokepoints Come Under Threat

Two critical maritime chokepoints are under threat in the global oil market. The Strait of Hormuz in the Arabian Gulf and Bab El-Mandeb in the Red Sea account for approximately 15 million barrels of oil per day, with 10 million barrels passing through the Gulf and 5 million barrels through the Red Sea.

The increased vulnerability of these chokepoints has led to uncertainty in oil markets, contributing to higher global oil prices. Oil prices are currently trading at nearly $100 a barrel, with some predictions suggesting they could reach $120 a barrel if there is a major or complete closure of the Gulf.

Kamel Al-Harami, an independent oil analyst, notes that the situation has less to do with oil availability and more to do with its delivery. Oil tankers are struggling to transport crude from its point of origin to markets around the world due to disruptions in transportation routes and supply sources.