Tension in the Strait of Hormuz is a serious threat to oil exporters in the Persian Gulf

According to the exclusive report of Energy Press, the tensions in the Middle East continue to increase rapidly. The continued Israeli attacks on Lebanon and Gaza and various speculations about this regime’s attack on Iranian targets have kept the markets in a constant state of inflammation, and it does not seem that this situation will change in the near future, especially from the perspective that one year has passed since the start of the war. Gaza passed on the 7th of October.
wave effect
The Middle East is a region of unique geopolitical importance that hosts three of the most strategic energy bottlenecks in the world: the Strait of Hormuz, the Suez Canal, and the Bab al-Mandab Strait. These three regions together facilitate about half of the international marine oil trade. Their disruption will be a great threat to the stability of global energy markets.
Due to the fact that Western countries have various sources for oil import, price shocks and supply chain issues will undoubtedly affect them as well if tensions increase. In times of significant economic pressure and rampant inflation, ripple effects can fuel social unrest, and this in turn can affect energy distribution markets. “Barry Lyndon”, an analyst in the field of energy and society at the University of Pennsylvania, told the Guardian in this regard: “The countries of the Persian Gulf each have a special position in the field of oil and gas exports, as well as providing export crossings. Therefore, it is obvious that any disruption in these countries can severely affect the energy supply chain.” This analyst added: “From October 7th of last year until now, we have seen what harmful consequences the tension in the Middle East can have for the financial markets, especially the energy sector. This issue shows that if the tensions increase more and more, the markets may suffer such severe damage that it will take years to recover.”
This point should also be taken into consideration that the tension in any Persian Gulf country can lead to the expansion of the crisis in other countries. This ripple effect showed its importance more than ever in the 90s, at the same time as the Gulf War, as well as the military occupation of Iraq by the United States in the early 21st century. Therefore, according to experts, it should be noted that the chain of events in the Middle East and the Persian Gulf can affect not only the local markets but also the entire global energy sector and disrupt it.
The importance of the Strait of Hormuz
According to media reports, throughout the Middle East, the spread of conflict could disrupt oil routes and lead to a widespread crisis. In this regard, countries that depend on oil exports to support their economy – such as Iraq, Kuwait, Saudi Arabia and Qatar and other countries – will face a crisis.