Iran-Israel Conflict Threatens Global Oil Flow
Rising tensions between Iran and Israel are rattling global markets, with fears mounting that the conflict could soon choke the world’s oil lifeline.
The Strait of Hormuz, through which over 1/5 of global oil supply passes, is now at the center of a potential geopolitical crisis.
Iranian military officials have signaled they may consider shutting down the strait in response to Israeli strikes. Sardar Esmail Kowsari, a senior commander in Iran’s Revolutionary Guard, stated that Tehran would make “the best decision with determination” regarding the route’s status.
Oil Prices Could Surge as Supply Disruption Looms
Security analysts warn that even the threat of closure could send oil prices soaring, reigniting fears of supply shocks not seen since the 1970s. Energy expert Claude Moniquet described such a move as a “disaster for Europe,” with ripple effects expected across Asia and global supply chains.
A 20% drop in oil flows could freeze industrial production, halt shipping lanes, and spark new rounds of inflation as energy costs surge. The consequences would be severe not just for energy markets, but for consumer goods, transport, and manufacturing globally.
Risk of Wider Conflict and Recession
Beyond oil, the bigger danger lies in escalation. A shutdown of the strait could pull other nations into the fray, escalating tensions across the Middle East and beyond. Analysts fear that what begins as a regional standoff could rapidly become a global economic and security crisis.
The decisive variable remains Iran’s next move—whether it has both the intent and capability to carry out the closure. But if the Strait of Hormuz is blocked, the world could face its most severe energy shock in decades.
Kosta Gushterov
Reporter at Coindoo
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
