Some 20% of the world’s oil supplies rely on transit through the Strait of Hormuz. Tensions around the Strait following the U.S. and Israeli war of aggression against Iran means “global energy markets face one of their gravest shocks in decades,” according to an article by Reuters published Feb. 28. And that was before Iran effectively closed the Strait over the weekend.
Oil prices shot up already on March 1, with Brent crude up about 8%, according to AP. However, that number is expected to jump much further when markets open Monday morning, March 2. In a prescheduled meeting held on March 1, OPEC-Plus nations agreed to increase global oil output by 206,000 barrels per day—a figure that had already been agreed to in April, long before the hostilities with Iran began. Whether the decision will ease market fears remains to be seen.
