The conflict in Iran is causing a massive disruption in the global oil supply and sending energy prices skyrocketing.
It’s unclear how long the disruption will last — and therefore how long the markets will be squeezed and how high prices will ultimately go.
“The absolute disruption of flows through the Strait of Hormuz is by far the biggest disruption the world’s oil market has ever seen,” said Mark Finley, a nonresident fellow in energy and global oil at Rice University’s Baker Institute.
Finley, a former senior U.S. economist at BP, added that the “key question” is “how long-lasting will it be?”
After the initial U.S. and Israeli strikes on Iran, oil shipping through the nearby Strait of Hormuz effectively halted, squeezing supplies. Read more