Business
Why the Prospect of War With Iran Is Boosting Oil Prices
That’s roughly how much petroleum flows through the Strait of Hormuz, a deep channel between Iran and Oman, each day, equivalent to almost a fifth of global oil demand.
Disrupting tanker traffic or shutting the strait altogether is one way Iran might seek to retaliate against a possible American strike, analysts say, which is why oil prices have jumped alongside the U.S. military deployment in the region. Earlier this week, state-affiliated media in Iran said the strait would partially close for “security precautions.”
Brent prices rose more than 1% Thursday, adding to recent gains that have taken the global oil benchmark from less than $60 a barrel in early January to over $70 a barrel this week.