"The key risk for the global economy - and President Donald Trump's political fortunes at home - is a sustained disruption of shipping traffic in the Strait of Hormuz, which roughly 15 percent of the world's oil and 20 percent of its liquefied natural gas passes through."
"Commercial traffic has effectively stopped. At least four tankers across a 100-nautical-mile stretch of the strait and the Gulf of Oman have been attacked since the U.S. and Israel assaulted Iran over the weekend. Major shipping firms have all suspended Gulf transits, war risk insurance has been canceled, and hundreds of vessels are now at anchor or adrift."
"Diesel prices soared even higher than oil, up 17 percent. Analysts said it will probably result in diesel price hikes at the pump this week of more than 20 cents per gallon."
Escalating conflict in Iran is destabilizing global energy markets as tanker attacks target shipping in the Strait of Hormuz, a critical corridor through which 15% of world oil and 20% of liquefied natural gas flows. Crude oil prices jumped over 7% Monday morning, while diesel prices surged 17%, with pump prices expected to rise over 20 cents per gallon. Commercial shipping has effectively halted following Iranian bombing attacks and threats, with the Revolutionary Guard declaring the strait closed. At least four tankers have been attacked, prompting major shipping firms to suspend Gulf transits and cancel war risk insurance. Hundreds of vessels now sit anchored or adrift. Stock markets globally declined sharply, with U.S. futures dropping significantly. The economic impact depends on conflict duration and Iran's political stability, with sustained shipping disruption posing major risks to global economy and domestic U.S. affordability.
Read at The Washington Post
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