Saudi Oil Exports Strangled by Iran Conflict

The ongoing conflict between Iran and Saudi Arabia has led to a significant reduction in oil shipments from the Middle East, causing global prices to skyrocket. The situation began to deteriorate after the US and Israel attacked Iran, making the Strait of Hormuz an unreliable route for oil exports.

The Red Sea route also became more perilous as the Houthis captured key territories, further limiting Saudi Arabia's ability to ship oil. As a result, the country was forced to shut down its East-West pipeline, which in turn affected the Mediterranean option.

The price of gasoline has risen by 45% and diesel by 65%, setting new records. Economists warn that it will take years for Venezuela to increase production to meet the gap left by declining Middle Eastern oil shipments.