How will strikes on Iran affect global energy flows?
Teheran has previously threatened to close the Strait of Hormuz shipping chokepoint
IRAN still has an outsized ability to rattle global energy markets.
A US$10 rise in the price of a barrel of oil since the start of the year is a reminder of how seriously traders take any threat to the country, even though years of US sanctions mean Iran’s oil exports no longer make up a major share of the world’s supply.
The main source of market concern is Iran’s influence over shipping in the Strait of Hormuz, through which the oil and gas of its Gulf neighbours have to pass, and its sponsorship of militias throughout the region that could launch attacks on energy infrastructure.
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