The potential disruption of the Strait of Hormuz due to a conflict between Israel and Iran would likely have a more severe impact on global oil shipments than the Red Sea crisis, reports Upstream.
Significant Consequences
This highlights the strategic importance of the Strait of Hormuz as a vital chokepoint for oil transportation. Any disruption to the flow of oil through this narrow waterway could have significant consequences for the global energy market and the overall economy.
Any potential disruption in the Strait of Hormuz as a conflict between Israel and Iran spirals would likely be worse for global oil shipments than the Red Sea crisis, analysts say.
Tensions between Israel and Iran have been simmering over into outright conflict, with Tehran launching almost 200 missiles at Israel on Tuesday evening in response to the killing of the Hezbollah leader Hassan Nasrallah and Hamas chief Ishmael Haniyeh in July.
Tanker shares responded to the news with a surge during afternoon trading in the US on Tuesday and there was some upward momentum in European equities on Wednesday, Upstream’s sister publication TradeWinds reported.
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Source: Upstream
