Oil crisis: traders halt supplies en masse due to conflict between Iran and the US
1 March 01:14
Traders and major oil companies have begun to suspend transportation of raw materials through the strategically important Strait of Hormuz. The decision was made amid escalating military tensions between Iran, Israel, and the US.
This was reported by "Komersant Ukrainian" with reference to Reuters.
Suspension of supplies
According to the publication’s sources in trade circles, at least four large companies have decided to temporarily halt the movement of their ships. This was in response to mutual attacks in the region and threats to shipping.
“Our ships will remain in place for several days,” said one senior official in a large trading department, emphasizing the seriousness of the situation.
Warning of danger
The EU naval mission Eunavfor Aspides has called on carriers to exercise maximum vigilance. In addition to direct confrontation with Iran, the situation is complicated by the activities of the Yemeni Houthis.
According to sources, Aspides representatives reported that Yemeni Houthis had threatened new attacks on Israeli and American ships in the Red Sea and the Gulf of Aden.
The rebels say they are ready to take radical steps to protect their interests at sea.
The importance of the region
The Strait of Hormuz, located between Oman and Iran, is a critical artery for the global economy.
About one-fifth of global oil consumption passes through it. Any delays in this narrow passage pose risks to energy stability.
Oil prices have risen
It should be noted that the global fuel market is already in a state of turmoil. Oil prices recently hit a record high amid declining production and geopolitical instability.
Additional pressure on the market is being exerted by the revision of trade relations between major players — in particular, imports of Russian oil to India are expected to fall by half.
At the same time, regional leaders are already responding to the situation: India and Iran have raised prices for their own raw materials, which creates the conditions for further increases in energy prices worldwide.
