"Brent crude, the global benchmark, was trading in the high $70s on Monday morning following the effective halt of tanker traffic through the Strait of Hormuz. That's a sharp rise from before the U.S. and Israel attacked, but far from a worse-case scenario. Analysts have warned that prices could top $100 a barrel if oil trade is disrupted for a prolonged period of time, or if the war spills over into neighboring countries and destroys oil infrastructure."
"Patrick de Haan, an analyst with the app GasBuddy, estimates that in the next few days the spike in crude oil prices will push U.S. gasoline prices up by 10-30 cents on average, with some individual stations seeing prices rise as much as 85 cents. About 20% of global oil consumption passes through the Strait of Hormuz."
"Investors worry that a spike in energy prices could lead to higher inflation at a time when price gains seemed to have been slowly moderating. Meanwhile, the Strait is also a key chokepoint for trade of liquefied natural gas, or LNG the natural gas that's used to heat homes and make electricity, loaded into ships for easier global trade."
The escalating conflict with Iran has triggered significant disruptions in global energy markets. Brent crude oil prices rose sharply to the high $70s following attacks on oil infrastructure and the effective halt of tanker traffic through the Strait of Hormuz, which handles approximately 20% of global oil consumption. Stock markets declined, with the Dow Jones falling over 400 points and the S&P 500 losing 0.7%. Analysts warn prices could exceed $100 per barrel if disruptions continue or the conflict spreads to neighboring countries. U.S. gasoline prices are expected to rise 10-30 cents within days, while natural gas prices have surged significantly. Four vessels have been hit in Gulf waters, causing shipping companies to avoid the Strait due to safety concerns.
Read at www.npr.org
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