"About 20 percent of the world's oil comes from the Gulf region, and most of it is shipped on massive tankers through the Strait of Hormuz. This narrow waterway, located between Iran and Oman, is only 21 nautical miles (39km) wide at its narrowest point. More than 20 million barrels transit through the strait per day, which is one-fifth of global petroleum consumption and accounts for one-quarter of all oil traded by sea."
"According to the US Energy Information Administration (EIA), more than three-quarters of the world's oil supply (79.8 million barrels per day) travels by sea, funnelled through a handful of critical chokepoints with no easy transit alternatives. Since the Iran war began, marine traffic through the Strait of Hormuz has nearly ground to a halt."
"It's all about risk, Ismayil Jabiyev, supply chain analyst at CarbonChain, told Al Jazeera. Think about the Strait of Hormuz and cheap drones. It's not a physical blockage—Iran hasn't built a wall across the sea. It's all about risk. Cheap drones will always pose [a threat]."
Oil and gas serve as raw materials for thousands of products, including fertilizers. Following the US-Israel war on Iran beginning February 28, oil prices surpassed $100 per barrel for the first time since Russia's 2022 invasion of Ukraine. The Strait of Hormuz, a 21-nautical-mile-wide waterway between Iran and Oman, handles over 20 million barrels daily—one-fifth of global petroleum consumption. Marine traffic through this critical chokepoint has nearly halted due to vessel attacks and navigation interference. With over 79.8 million barrels daily traveling by sea through limited chokepoints, supply disruptions create severe consequences. Global supply chains face disruption, and prices are likely to increase, pressuring consumers and businesses. While prices briefly dipped after Trump's comments, analysts warn high prices could persist without agreement between Washington, Tel Aviv, and Tehran.
#oil-prices-and-geopolitics #strait-of-hormuz-shipping-disruption #iran-us-israel-conflict #global-supply-chain-crisis #energy-security
Read at www.aljazeera.com
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