Kathmandu. Iran’s Supreme Leader Ayatollah Ali Khamenei has been killed in a US-Israeli attack on Iran. Iranian media confirmed Khamenei’s death.
The war has once again escalated global tensions and raised concerns about oil prices to a climax. If reports are to be believed, there could be a significant fluctuation in the price of crude oil next week. Ships in the Strait of Hormuz have been grounded due to the war. This seems to have disrupted oil supplies from the Middle East.
The news of the blockage of oil ships in the Strait of Hormuz amid U.S.-Israeli attacks on Iran and Iran’s retaliatory attacks has heightened global tensions. This is because about 20% of global oil consumption passes through this route and any disruption could lead to a significant increase in price. This could lead to further price increases and long-term effects.
Oil prices had already risen due to fears of a US-Israel war with Iran. Brent crude, the global benchmark, closed at a seven-month high of $72.87 a barrel on Friday. Iran dominates the oil sector. It exports about 16 million barrels of oil every day. Most of them go to China. If supplies are disrupted, China will go elsewhere for oil in the world market. This could lead to a sharp increase in prices.
The Strait of Hormuz carries about 20 percent of the daily global oil supply. It is a highly sensitive chokepoint and crude oil flows through this narrow corridor mainly from Gulf producing countries Saudi Arabia, Iraq, the United Arab Emirates, Kuwait and Qatar. It reaches major Asian markets such as China, India, Japan and South Korea. However, the war continues to cause disruptions. Analysts say there is no point in Iran trying to close the waterway. Because it will cut off its own exports and harm its only major customer, China.
According to a pre-war projection by the Center for Strategic and International Studies, crude oil could exceed $90 a barrel if Iran disrupts tanker traffic. Tensions have escalated as the war escalates and news of the death of Iran’s Supreme Leader Khamenei. –Agency
