"Iran's new supreme leader released his first statement Thursday since succeeding his late father, saying his country would keep up attacks on Gulf Arab neighbors and use the effective closure of the Strait of Hormuz as leverage against the United States and Israel. A fifth of the world's oil typically sails through the strait, and oil producers in the region are cutting production because their crude has nowhere to go."
"The center of action was again the oil market, where the price of a barrel of Brent crude, the international standard, climbed 7.9% to $99.25 after briefly touching $101.59. Worries are worsening that the war could block the production of oil in the Persian Gulf for a long time and cause a debilitating surge of inflation for the global economy."
"Analysts have said that if the Strait of Hormuz remains closed, oil prices could jump to $150. But such moves are short-term fixes, and they do not clear the long-term risks."
Geopolitical tensions with Iran are destabilizing financial markets as oil prices surge toward $100 per barrel. Major stock indices fell sharply, with the S&P 500 down 1.1%, Dow Jones down 1.2%, and Nasdaq down 1.4%. Brent crude climbed 7.9% to $99.25, briefly touching $101.59. Iran's new supreme leader threatened continued attacks on Gulf neighbors and potential closure of the Strait of Hormuz, through which one-fifth of global oil passes. Regional oil producers are reducing output due to transportation constraints. While the International Energy Agency announced releasing 400 million barrels from emergency stockpiles, analysts warn oil could reach $150 if the strait remains closed, creating long-term economic risks including debilitating inflation.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]