As Trump has declares the truce “over” and aggression ramps back up, Robin Brooks of the Brookings institution walks us through what this all might mean for the global oil market.
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A tenuous deal with Iran has pushed oil prices lower, but U.S. strategic petroleum reserves are at their lowest level in 40 years and commercial inventories have been heavily drawn down.
Global oil inventories are buffering consumers from the full force of the supply shock, but analysts warn that reserves can't be drawn down indefinitely.
Two months into the disruption of oil flows through the Strait of Hormuz, a gap is opening between what financial markets expect oil to cost and what buyers are actually paying to get a physical barrel delivered today.
Analysts say the global oil market faces months of disruption from damaged infrastructure, a slow reopening of the Strait of Hormuz, and drawn-down reserves.
The war in the Middle East has shaken global energy markets over the past few weeks. Given the volatility of fossil fuels, could this be the push countries need to invest more in renewable energy?
Around 20% of the world's oil passes through the Strait of Hormuz, off the coast of Iran. Oil prices are higher today because of how a potential U.S. intervention could limit oil supply.
