At present, geopolitical tensions between Iran, Israel and America are increasing rapidly. This conflict is not only limited to the military level, but it is also having deep impact on the global oil market. There has been a sudden surge in crude Oil Prices Surge in recent weeks, the main reason for which is the growing global concern regarding Strait of Hormuz at Risk.
Strait of Hormuz at Risk is a very narrow but strategically important sea route, which is the main route for oil coming from the Gulf countries. About 20 percent of the world’s oil passes through this route. In such a situation, if there is any obstruction in this route, then it can affect the energy supply of the entire world.
According to reports, US intelligence agencies have informed about Iran’s preparations to plant underwater mines in this Strait of Hormuz at Risk. Though the Strait of Hormuz has not yet closed, there remains a possibility that if tensions escalate, Iran could temporarily close or threaten the route.
If that happens, not only could Oil Prices Surge soar above $100 a barrel, but the global supply chain and economy would also be deeply impacted. The impact would be particularly severe on countries that depend on the Gulf for their energy needsβsuch as India, Japan, and South Korea.
OPEC+ is trying to keep oil production stable through efforts, but these efforts could also fail if there is a blockage in the Strait of Hormuz.
