Arabic version: تهديدات إيران في مضيق هرمز تدفع أسعار النفط والغاز للارتفاع
Oil and gas prices surged on Tuesday following a warning from an Iranian official who stated that Iran would “set fire to anyone who tries to pass through” the Strait of Hormuz. This announcement came as the conflict between Iran and the US and Israel continued. Brent crude prices rose by 3.2% to $80 a barrel, while the price of liquid natural gas skyrocketed by 30%. According to BBC News, energy prices had already seen sharp increases on Monday after markets reacted to the US-Israel strikes on Iran and Tehran’s subsequent retaliation.
The escalation in conflict has caused a halt in shipping through the Strait of Hormuz, a critical passage for global oil and gas, accounting for approximately 20% of the world’s energy supplies. Following recent attacks on vessels in the region, Ebrahim Jabbari, an adviser to the commander-in-chief of Iran’s Islamic Revolutionary Guard Corps (IRGC), warned that ships should avoid the area to evade a serious response from Iran.
In addition to rising energy prices, transportation costs for oil have also surged. Hiring a supertanker to transport oil from the Middle East to China reached a record high of over $400,000, nearly double the cost from the previous week. Sanne Manders, president of logistics technology platform Flexport, stated that the Strait of Hormuz is “effectively closed,” attributing this to both the unwillingness of carriers to take risks and insurance companies refusing to cover such shipments.
Experts predict that crude oil prices could exceed $100 a barrel if disruptions persist, potentially leading to a rise in US petrol prices by up to 25 cents a gallon. US President Trump is reportedly convening a meeting with Treasury Secretary Scott Bessent and Energy Secretary Chris Wright to address the implications of the conflict on living costs. Secretary of State Marco Rubio indicated that plans to manage rising energy prices will be announced soon.
In the UK, rising oil prices are expected to translate into higher fuel costs at the pump, according to Alasdair Locke, chairman of Motor Fuel Group. The impact of these price increases is also felt in Asian markets, with significant declines reported in stock indices across Japan, Hong Kong, and South Korea, particularly affecting export-reliant firms. The ongoing geopolitical tensions continue to raise concerns over the economic ramifications of the conflict.
