US-Israel-Iran War Latest Live News: The conflict between the US and Iran is becoming less a battle for land and more a struggle on water, with oil tankers and naval forces emerging as targets. The recent round of hostilities reveals a sobering truth as control of fuel shipping lines is as vital as military might. Brent crude oil prices have risen to $96.28 per barrel from around $70 per barrel before the conflict.
US-Israel-Iran War Latest Live News: Why Are US and Iran Targeting Oil Tankers?
This is part of a larger economic and military conflict between the two nations while america claims that the ships owned by Iran are part of groups involved in making money from oil for the Islamic Revolutionary Guards Corps and their regional allies. The Iranian authorities contend that the American forces are blockading and disrupting shipments coming out of Iran.
The recent flare-up has been caused by missiles fired by Iran against an American aircraft carrier and destroyer close to the Strait of Hormuz while following this, three oil tankers belonging to Iran were attacked by America, according to the provided information.
US-Israel-Iran War Latest Live News: Strait of Hormuz Is the Biggest Pressure Point
The significance of the Strait of Hormuz lies in the vast amount of energy flowing through it. In pre-crisis times, some 20 million barrels of oil were being pumped through the strait each day, which amounted to about 20 percent of world oil reserves. The mere possibility of interruption can be significant in this case. Iran’s ability to blackmail shippers is economically significant for the Iranians, whereas the U.S. military might allows it to interfere in such affairs.
US-Israel-Iran War Latest Live News: Shipping Traffic Has Fallen Sharply
The most concerning factor for the energy market is the perceived decline in maritime transit while cited information by Kpler indicated only six ships passed through the straits on Wednesday, 11 ships on Tuesday and five ships on Monday with an average of 13 ships per day during the last 10 days.
There has been a more positive outlook offered by US officials who say that millions of barrels are passing through the waterways however, the difference in statements indicates the level of uncertainty associated with oil flows. Uncertainty itself raises prices for traders.
US-Israel-Iran War Latest Live News: Could Brent Crude Cross $100?
In light of Brent’s rising prices to $96.28, the reference price of oil was merely $3.72, or 3.9% under $100. From $70 at the time before the war, the price of oil has increased by $26 per barrel, which is an increment of 37%. Another spike in prices caused by another tanker attack as port closure or anything else related to the Strait of Hormuz would push the price of Brent above $100 however this is not certain. It all depends on how much oil will be flowing to the market and for how long.
US-Israel-Iran War Latest Live News: What Happens If the Tanker War Escalates?
The main risk is that of escalating retaliation while american strikes will weaken the ability of the Iranians to profit from their oil, while the Iranian actions may disrupt supplies globally. The consequences of the situation are already seen on the US oil market, where the price of diesel is said to have reached its maximum level ever of $5.85 per gallon.
This means that the tanker crisis has become something larger than just a disagreement regarding vessels while now this is a clash between nations regarding the oil revenue, freedom of navigation and stamina. Should the attacks grow around the Hormuz Strait, $100 oil is possible. Should things calm down and shipping resume, prices may drop back. At the moment, each new tanker attack increases risks in the already unstable global energy market.
ALSO READ: US-Israel-Iran War Latest Live News: Iran War to Continue for 6 More Months? Ex-US Defence Chief Panetta Warns Trump of 3 Options as ‘Iran-First’ Support Grows Amid Regional Tensions Escalates
Disclaimer: This article is based on reported information and supplied material; figures and claims may change as the US-Iran conflict and oil markets develop.
