US-Iran Conflict Sends Oil Prices Soaring Amid Strait of Hormuz Crisis
The Middle East crisis and its impact on global oil prices has been a complex issue since February 28, according to Victor Eromosele, Executive Director of the Centre for Petroleum Information (CPI). The conflict between the US and Iran has resulted in a spike in crude oil prices, which have tripled since the war began.
Eromosele emphasized that the Strait of Hormuz is a critical waterway, through which 20-25% of the world's supply passes. The crisis has also affected LNG and gas production, with Qatar being particularly impacted. Iran has imposed tolls on vessels passing through the strait, with ships carrying 2 million barrels of oil paying $2 million per trip.
The International Energy Agency (IEA) has reported that the supply disruption is the worst in history, with 400 million barrels pulled from strategic reserves to mitigate the impact. However, the crisis continues to escalate, with the US and Iran engaging in asymmetric warfare that affects both friends and foes.