How long can energy markets withstand the Iran war?
Strategic oil reserves and spare capacity are running thin
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TWICE now, global oil markets have priced in the closure of the Strait of Hormuz, the choke point through which roughly a fifth of the world’s crude and a third of its liquefied natural gas once flowed, and twice they have priced it back out.
After the war between the US and Iran began, Brent crude briefly spiked past US$120 a barrel.
By June, when a reopened the strait, Brent had fallen to US$72.24, the lowest since the US and Israel attacked Iran on Feb 28.
