The US-Israel war with Iran has triggered the biggest oil disruption in history, as the critical Strait of Hormuz remains effectively closed, with some experts estimating oil could hit $150 per barrel by the end of March.
Amena Bakr, head of Middle East Energy and OPEC+ Insights at analytics firm Kpler, told CNN’s Becky Anderson, “If we see a continuation of the strait being obstructed like this … oil prices could easily climb up to that level.”
Although oil prices fell below $100 following President Donald Trump’s mixed signaling on when the conflict would end, Bakr advised caution as a number of Middle Eastern oil exporters have halted production due to security threats in the strait.
Bakr said the president’s recent reassurances that vessels passing through the strait would be assisted by US naval ships has done little to motivate the use of the key transportation route.
“We’re not seeing vessels become suddenly, overnight, a lot braver. And crossing the strait just because Trump told us that he’s pretty close to ending the conflict,” she added, “that hasn’t restored confidence in the market.”
Source: CNN
- Agencies
