Prediction of An Unprecedented Spike In Oil Prices If The Strait of Hormuz Is Closed

According to Saednews, the American publication The Street reported: Following last night’s U.S. attacks on Iran’s nuclear facilities and Tehran’s increasing threats to close the Strait of Hormuz, forecasts indicate that if this action takes place, oil prices in global markets will face an unprecedented surge.

After the global trade war—which began with Donald Trump’s tariffs—raised concerns about the world’s economic growth, the ongoing conflict between Iran and Israel has become a serious threat to the world’s oil supply.

This situation could lead to a major energy crisis because if tensions persist and the war in the region expands, there is a possibility that maritime oil transportation through the Strait of Hormuz could be blocked, and even Iranian oil might be removed from the global market. These concerns have caused sharp increases in Brent crude and West Texas Intermediate (WTI) prices.

This month, the price of Brent crude oil has risen by 18 percent to $79 per barrel, while WTI prices have increased by 21 percent to about $75 per barrel.

These price increases have had a significant impact on the global oil market and the world economy.

Analysts from banks such as Citigroup, J.P. Morgan, and Goldman Sachs have revised their oil price targets in response to this situation.

According to them, there is a serious threat currently facing the global oil market, which, if the conflicts continue, could disrupt oil supply and push prices to even higher levels.

The report states that about 18 to 19 million barrels of oil pass through the Strait of Hormuz each day, accounting for roughly 20 percent of the global oil consumption, including crude oil, condensates, and fuels. The proximity of this strait to Iran means that if Iran decides to block it, it could become a major chokepoint affecting global oil supply significantly.