Oil markets unsettled as traffic through Hormuz stalls

The US and Israeli attacks on Iran prompted an immediate reaction on oil markets. According to Reuters sources, several large energy companies and traders have temporarily suspended shipments through the Strait of Hormuz, one of the world’s most important energy routes.

According to one manager, ships ‘will remain in place for several days,’ signalling concern over further escalation and possible retaliatory measures by Tehran.

The Strait of Hormuz links the Persian Gulf to the Arabian Sea and carries more than 20 million barrels of oil and fuel a day – roughly one fifth of global consumption. Much of OPEC’s exports flow to Asia, while Qatar ships almost all of its liquefied natural gas through the strait.

The region has a long history of tension, from the tanker war of the 1980s to the recent detention of vessels.

Analysts say even a short-term disruption to transport could push up energy prices and heighten market uncertainty.

(reuters, pir)