All the countries in the Gulf region are interested in keeping the Strait of Hormuz open between Oman and Iran as an export artery.
Oil prices reacted suddenly and / but temporarily when the USA killed the top Iranian commander Qassem Soleimani with a drone attack and Iran retaliated against the US bases in Iraq. It quickly increased and then fell.
Increasing tensions in the Gulf region, the risks posed by oil tankers passing through the Strait of Hormuz, a critical channel for global supply, and issues related to the strong growth plans in Iraq’s production continue to be on the agenda. New perspectives on the crisis in the Gulf, its effects on oil and natural gas and the speed of energy transport flow are developing.
Crude prices soared before falling, with missiles and drones attacking petroleum processing facilities in Abqaiq and Khurais in Saudi Arabia in September. The Iranian Islamic Revolutionary Guards of the US oil market
His reaction to the killing of the Jerusalem Force leader Qassem Soleimani was very similar. Brent crude oil rose above $ 70 early last week on Monday and again Wednesday, following Iran’s Iran retaliation attack on two air bases in Iraq. However, on Thursday afternoon, oil prices fell below their levels before Soleimani’s murder.
Despite the tense weather in the Persian Gulf, the news that the USA and Iran are moving away from hot conflicts created a widely shared positive atmosphere.
It is indisputable that the Strait of Hormuz between Oman and Iran is the most critical oil passage in the world. Approximately one-fifth of global oil consumption and one-quarter of liquefied natural gas trade went through this strait in 2018, and widespread speculation was made as to whether Iran would block it from tanker traffic. However, this seems unlikely: all countries in the Gulf region have an interest in keeping the Bosphorus open as an export route. Decades of history have shown that oil continues to flow even during periods of intense conflict, such as the “Tanker War” of the 1980s.
There has been some disruption in tanker traffic in the last period of hot events. Saudi Arabia’s national shipping company, Bahri, temporarily suspended transitions and the movements of other oil groups and tanker operators also slowed down. However, there has been no significant financial problem in the oil supply that has been reflected in the media.
Aftershocks caused by the killing of Soleimani may also affect Iraq, which is trying to remain friendly with both the USA and Iran. US citizens working for foreign oil companies in southern Iraq started leaving the country last Friday. Although no impact on the country’s oil production is expected, this may make it difficult to increase production in the long run. Increasing tensions and a more distant relationship with the US can hamper the growth of the Iraqi oil industry.