On Feb. 28, U.S.-Israel forces conducted strikes on Iran, killing Iran's Supreme Leader Ali Khamenei, as well as over 100 people, many of them children, at a school in southern Iran. Iran has retaliated by carrying out attacks on Israel and surrounding Middle Eastern countries that host U.S. military bases.
In a recent NPR interview, journalists explored the potential impact of the escalated conflict on global oil supply and gas prices.
"Iran is a major oil exporter to China, even despite U.S. sanctions," said NPR journalist Julia Simon. "But that's not the biggest worry here. The real worry for global oil markets is about where all all this fighting is taking place. The Strait of Hormuz — it's this key shipping route. To get to foreign markets, those exports go through the Strait of Hormuz. About 20% of global oil and oil products go through that strait normally."
Traffic through the Straits of Hormuz has already been impacted by the increased uncertainty and violence in the area, with some oil transport ships reporting attacks between March 1 and March 4. This is in keeping with the recent statement from an Iranian Revolutionary Guards official to attack any ships crossing the straits, a threat that has been made for years by the Iranian government in the event of an attack on the Islamic Republic.
Saudi Arabia, a key U.S. ally in the region, is the world's largest oil exporter, with 7.2 million barrels per day passing through the Straits of Hormuz.
