Latest news with #energySupplies
Bloomberg
22-06-2025
- Business
- Bloomberg
Oil Soars as Trump's Attack on Iran Boosts Risks to Supplies
Oil surged after the US struck Iran's three main nuclear sites and threatened further attacks, exacerbating a crisis in the Middle East and stoking concerns that energy supplies from the region could be disrupted. Global benchmark Brent rallied as much as 5.7% to $81.40 a barrel, extending three weeks of gains. In a weekend address, US President Donald Trump said air attacks had 'obliterated' the trio of targets, and threatened more military action if Iran didn't make peace. In its initial reply, Tehran warned the strikes would trigger 'everlasting consequences.'
Al Arabiya
22-06-2025
- Business
- Al Arabiya
Will Iran shut the Strait of Hormuz? What that means for the world
Iran's Supreme National Security Council is now considering whether to close the Strait of Hormuz, a strategic chokepoint for global energy supplies, according to a report by state-owned Press TV on Sunday. The move follows reports that Iran's parliament has approved the measure, though the final decision has yet to be made. Esmail Kosari, a member of parliament and a commander in Iran's Islamic Revolutionary Guard Corps (IRGC), told the Young Journalist Club that closing the strait was on the agenda and 'will be done whenever necessary.' The Strait of Hormuz, a narrow passage connecting the Arabian Gulf to the Arabian Sea, is arguably the most critical maritime route for global energy transit. Roughly 20 percent of the world's oil and natural gas supplies pass through the strait, which lies between Iran and Oman. Any disruption to this flow would send shockwaves through global energy markets, potentially triggering a sharp spike in oil prices and further destabilizing an already volatile region. The strait has long been a geopolitical flashpoint. Iran has threatened to close it in the past, especially during periods of heightened tension with the United States. But despite multiple threats over the years, it has never gone so far as to shut it down, a move that would be widely seen as an act of escalation with global consequences. What makes this moment different is the context: an escalating war with Israel and growing pressure from the US. The potential closure would not just be a tactical response – it would be a strategic escalation, signaling Tehran's willingness to weaponize global energy flows to deter or retaliate against further military action. A closure of the strait – even a temporary one – could send oil prices soaring overnight. The mere threat of disruption often rattles markets; an actual closure would be far more destabilizing. Countries that depend heavily on Gulf oil, including China, Japan, India, and European nations, would be directly affected. Moreover, it would test the response of Western naval forces, particularly the US Navy, which maintains a presence in the region precisely to ensure freedom of navigation. While the Iranian parliament has reportedly approved the measure, the final call lies with the Supreme National Security Council, which is ultimately overseen by Supreme Leader Ali Khamenei. It remains unclear how close Iran is to implementing the measure, or whether it's using the threat as a bargaining chip amid rising tensions. But Kosari's statement that closure 'will be done whenever necessary' suggests Tehran wants to keep its options – and leverage – open. In the coming days, much will depend on how the conflict between Iran and Israel unfolds, how Iran responds to the latest US attacks on its nuclear sites, and whether diplomatic off-ramps emerge. But one thing is clear: if the Strait of Hormuz is closed, even temporarily, the ripple effects will be felt far beyond the Arabian Gulf.
Bloomberg
20-06-2025
- Business
- Bloomberg
Middle East's Oil Continues to Flow Despite Israel-Iran Attacks
A week since Israel and Iran started to exchange missile barrages, oil tanker transits through the critical Strait of Hormuz have remained largely steady. A seven-day rolling average for oil tankers above 10,000 deadweight tons that sailed through the Strait — the passageway for the Persian Gulf's energy supplies to the world — was approximately 42-to-45, according to vessel-tracking data compiled by Bloomberg.
Bloomberg
17-06-2025
- Politics
- Bloomberg
China Suggests US Should Help Ease Tensions Between Israel, Iran
China suggested the US use its influence with Israel to stop the conflict with Iran from spilling over, a sign Beijing is becoming increasingly concerned about the stability of a region it relies on for energy supplies. 'China calls on all parties concerned, especially those that have a special influence over Israel, to shoulder their due responsibilities and take immediate measures to cool the tensions and prevent the conflict from expanding,' Foreign Ministry spokesman Guo Jiakun said at a regular press briefing in Beijing on Tuesday.
