Roughly 21 million barrels of oil – about 20% of the world’s total supply – pass through the Strait of Hormuz each day, mostly originating from Iran, Iraq, Kuwait, Saudi Arabia, and the United Arab Emirates, and much of it bound for Asia and Southeast Asia.
Iran says it doesn’t intend to close the strait, but ships began dodging the waterway almost immediately after strikes began – vessel traffic through it plummeted 70% on Saturday.
All these strikes have jolted oil markets, with the benchmark Brent crude price jumping 8% on Monday, peaking at nearly $79 per barrel. At the time of publication, it’s hovering around $76 a barrel. In the days before the war, Iran’s oil exports actually doubled their recent average, and they appear to be continuing unabated despite the conflict. Most of it goes to China.
