The oil market has now stabilized because US President Donald Trump has taken a break.
Iran's blocking of the Strait of Hormuz could trigger a rise in oil prices. We are talking about a figure of $100-120 per barrel.
Alternative energy entrepreneur and economist Oleg Sarkits spoke about this on air at KIEV24.
However, if the US does join in the shelling of Tehran and Iranian territory, there will be jumps in oil prices, the economist added.
“Firstly, 20% of oil passes through the Strait of Hormuz. Secondly, Iran is the largest supplier of oil to China, and is the second largest oil consumer in the world. If the US consumes 20 million barrels daily, then China consumes 11 million barrels daily. It is a big player,” Sarkits said.
But now the threat of blocking and striking tankers has arisen, causing concern. Saudi Arabia, UAE, Qatar and others have become partially blocked. They supply about 40% of production. Yes, they can ship through the Red Sea, but in this case there will still be an increase.
“If oil currently costs $76 per barrel, then we can reach $100-120 per barrel,” the expert noted.
Let us recall that Iran is seriously considering closing the strategic Strait of Hormuz, which is the world's most important route for transporting oil and liquefied gas, in order to carry out an Israeli attack. This proposal was voiced by Iranian politician Esmail Kosari, a member of the parliamentary commission on security.
Sky News economics correspondent Gurpreet Narwan predicts that blocking the route could push the price of oil to more than $100.
It is known that up to 30% of the world's liquefied natural gas supplies and up to 20% of global oil and oil product exports pass through the strait.
