With the latest new in Middle East .The Middle East conflict is worsening. In 2023, Hamas attacked Israel and took hostages back to Gaza. Israel retaliated by invading Gaza, and the situation remains unresolved. Israel is now battling on a second front, engaging Hezbollah, and in October, it invaded Lebanon. Last week, Iran launched 180 ballistic missiles at Israel, most of which were intercepted. In response, it is expected that Israel will retaliate, and there are rumors that Iran’s oil facilities may be the target.
Iran, a member of OPEC, accounts for about 3% of global output. While this is not a significant share, especially considering the economic sanctions Iran faces that restrict its supplies from reaching most markets, the real issue is Iran’s geographic influence. Iran controls key trade routes, such as the Strait of Hormuz, through which 30% of the world’s oil is transported. Historically, Iran has attacked tankers in the strait, and there is a possibility it could do so again if the conflict escalates.
Another key concern is the potential spread of the war, with more nations possibly getting involved, especially large oil producers like Saudi Arabia. Should that happen, it could further disrupt global oil supplies.
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