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OIL, LNG PRICES TO SHOOT UP IF TEHRAN BLOCKS STRAIT OF HORMUZ
Why in the news?
Iran-Israel conflict escalation raises concerns over potential disruptions to global oil and LNG supplies via the Strait of Hormuz.
source:wordpress
About the Impact on Oil and LNG Prices:
- If Iran blocks the Strait of Hormuz, oil and LNG prices are expected to surge, impacting countries like India that rely heavily on imports.
- Crude oil prices have already reached around $90 per barrel since the escalation of conflict between Iran and Israel.
- Closure of the Strait could disrupt the flow of 21 million barrels of oil per day, affecting global oil consumption and LNG trade, particularly from Qatar and the UAE.
| About the Strait of Hormuz ?
● The Strait of Hormuz links the Persian Gulf with the Gulf of Oman and the Arabian Sea. ● Width ranges from 35 to 60 miles, separating Iran from the Arabian Peninsula. ● Critical oil chokepoint due to significant oil volumes passing through. About Key facts about Gulf of Oman: ● Also known as the Sea of Oman or Gulf of Makran. ● Sole entrance from the Indian Ocean to the Persian Gulf. ● Borders Pakistan, Iran, UAE, and Oman. ● Relatively shallow due to its origin. ● Width ranges from 320 km to 35 miles. |
