- Κυρ Μαρ 15, 2026 2:32 am
#260
Middle East producers have started reducing oil production. A rise in oil prices to around $108 per barrel could add roughly 0.8 percentage points to U.S. inflation. The impact on Europe and the U.K. would be far more severe due to their greater dependence on energy imports.
The International Energy Agency proposed nearly 400 million barrels of oil to lower prices during the U.S. Israel war with Iran. However with 18.20 millions barrels/day potentially lost from the Strait of Hormuz a 2.2 mb/d release would only partially offset the shock. Strategic reserves may slow price spikes but cannot replace lost supply.
Also the IEA holds 1.24 billion barrels in government stocks and around 600 million in industry stocks, enough for nearly a month of global demand.
The Strait of Hormuz has shut down, threatening one of the biggest energy disruptions in modern history. Around 20% of global oil consumption and LNG trade passes through it daily. Asia is most exposed, receiving nearly 90% of the crude and LNG shipments, while the U.S. relies far less.
The Port of Jabel Ali constitutes a central point in the UAE strategic port chain within the Middle East, a plan that concerns China. Consequently, Iran targets the UAE as one of the key countries of the IMEC, while China, in turn, uses Iran as a proxy against the EU-India agreement, which aims to dismantle its own BRI.
Excluding energy Bahrain faces around 62% of it's total trade disrupted. The UAE is exposed at 58% and Qatar at 46%. Gulf ports have become military targets, with the Strait effectively shut, sending shipping rates soaring and halting air cargo for a week.
Oil shocks affects markets differently today because economies are more diversified and energy-efficient. The bigger risk is prolonged disruption, especially if the Strait of Hormuz remains blocked.
Kharg island, a few kilometers off the coast of Iran in the Persian Gulf was the target of American attacks, as Donald Trump announced, clarifying that only military targets were hit. We must say that the island handles about 90% of Iran oil exports, making it a critical vulnerable target and between 1.3-1.6 million barrels of oil are shipped daily from Kharg, although Iran increased the volume to 3 million barrels a day in mid-February, according to JP Morgan, in response to Trump's warnings of an attack. In addition the island holds 18 million barrels as reserves, according to the U.S. investment bank.
The island began exporting oil in 1960 and was constructed to support exports reaching up to 7 million barrels per day. At the peak of production in 1976, Iran reached 6.6 million barrels per day. Kharg has 55 crude oil storage tanks and where over 34 million barrels are stored.
The International Energy Agency proposed nearly 400 million barrels of oil to lower prices during the U.S. Israel war with Iran. However with 18.20 millions barrels/day potentially lost from the Strait of Hormuz a 2.2 mb/d release would only partially offset the shock. Strategic reserves may slow price spikes but cannot replace lost supply.
Also the IEA holds 1.24 billion barrels in government stocks and around 600 million in industry stocks, enough for nearly a month of global demand.
The Strait of Hormuz has shut down, threatening one of the biggest energy disruptions in modern history. Around 20% of global oil consumption and LNG trade passes through it daily. Asia is most exposed, receiving nearly 90% of the crude and LNG shipments, while the U.S. relies far less.
The Port of Jabel Ali constitutes a central point in the UAE strategic port chain within the Middle East, a plan that concerns China. Consequently, Iran targets the UAE as one of the key countries of the IMEC, while China, in turn, uses Iran as a proxy against the EU-India agreement, which aims to dismantle its own BRI.
Excluding energy Bahrain faces around 62% of it's total trade disrupted. The UAE is exposed at 58% and Qatar at 46%. Gulf ports have become military targets, with the Strait effectively shut, sending shipping rates soaring and halting air cargo for a week.
Oil shocks affects markets differently today because economies are more diversified and energy-efficient. The bigger risk is prolonged disruption, especially if the Strait of Hormuz remains blocked.
Kharg island, a few kilometers off the coast of Iran in the Persian Gulf was the target of American attacks, as Donald Trump announced, clarifying that only military targets were hit. We must say that the island handles about 90% of Iran oil exports, making it a critical vulnerable target and between 1.3-1.6 million barrels of oil are shipped daily from Kharg, although Iran increased the volume to 3 million barrels a day in mid-February, according to JP Morgan, in response to Trump's warnings of an attack. In addition the island holds 18 million barrels as reserves, according to the U.S. investment bank.
The island began exporting oil in 1960 and was constructed to support exports reaching up to 7 million barrels per day. At the peak of production in 1976, Iran reached 6.6 million barrels per day. Kharg has 55 crude oil storage tanks and where over 34 million barrels are stored.