[45735] Volatility in the global oil market: Fear of the closure of the Strait of Hormuz

Sharp fluctuations in the global oil market

The global oil market has experienced significant turmoil in recent days. According to the Abu Ali Express channel, known for its critical stances towards Iran and the regime in Tehran, the price of a barrel of Brent crude plummeted to about $112, this after having reached the threshold of $125 in the last two days. The channel defines this as "high volatility in the global oil market" according to Abu Ali Express.

At the same time, an analysis published on Hadashot 360 | All The News focuses on the geopolitical concerns fueling the uncertainty. According to a report by "The Economist" cited on the channel, a prolonged closure of the Strait of Hormuz could lead to the removal of one-seventh of the global oil supply from the market.

Analyst estimates cited in Hadashot 360 warn that a scenario of blocking the strait for several months could cause oil prices to spike to an extreme range of "$150-200 per barrel". As of now, the price has already climbed to a level of about $120, a significant increase compared to the price of less than $100 just one week ago.