Fluctuation in the oil market with tension in the Strait of Hormuz

According to Energy Press, Ali Asghar Zargar said about the impact of the recent tensions between Iran and Israel on the oil price and market: Considering that the crisis has not yet reached a boiling point and there are only bilateral threats, perhaps the events of the Strait of Hormuz are a warning to the Americans and Israel, but that’s it. It makes entering and exiting the Strait of Hormuz problematic and thus affects the price of oil.

He added: In any case, if we assume that there will be a retaliatory attack from Iran and they will respond, the price of oil will be affected and will rise. In addition, according to their answer, if Iran decides to disrupt the movement of oil ships in the Strait of Hormuz, then there is no doubt that it will affect the price of oil even in the short term, and this effect will not be small, that is, in the short term. It will lead to an increase in oil prices.

This energy expert said: Now America can easily meet the needs of Europe or compensate for the shortages through the reserves they have, but in general, the impact of the tension in Hormuz will have a great immediate impact on the price and the stock market, and the price of oil will be high in the short term. will win because it is difficult to compensate for the oil that passes through the Strait of Hormuz, and there will be a shortage of oil until the crisis is resolved, and this process will directly affect the price even if there are enough reserves or if the United States can compensate for the shortage, because China and India get most of their oil through the Strait of Hormuz. Therefore, the tension in the region and this direction will increase the demand and due to the disturbance in the supply of prices, it will take an upward trend.