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Price of oil could spike after Iran’s parliament votes to close key shipping route (www.theguardian.com)

submitted 2 days ago by Powderhorn@beehaw.org to c/news@beehaw.org

12 comments fedilink hide all child comments

Might want to top off your gas tank today, if you have one.

Iran’s parliament has voted to shut down the vital Hormuz shipping channel in retaliation against Donald Trump’s attack on the country, prompting fears of a sharp spike in oil prices that could cause a global recession.

A barrel of Brent crude was selling for about $77 on Friday, having risen by more than 10% since mid-June when Israel’s attack on Iranian nuclear sites prompted missile strikes from Tehran against Tel Aviv.

But Trump’s decision to follow Israel by launching a US attack on Iran has set off a chain of events that analysts warned could drive prices up much further when markets open at 11pm UK time on Sunday.

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[–] TachyonTele@piefed.social 11 points 2 days ago* (last edited 2 days ago) (2 children)

Which is stupid if you live in America. The US has one of the worlds largest reserves, and supplies it's own oil. Companies are just going to be greedy. Shocker.

[–] bradinutah@thelemmy.club 19 points 2 days ago (2 children)

Basic supply and demand for a global commodity. If there's less supply globally, then the price will go up. Doesn't matter if you're in the US or China. Another demonstration of the Donvict's broken campaign promises and lack of understanding of the complexity of the Middle East and war in general.

[–] TachyonTele@piefed.social 10 points 2 days ago

Good point on the basics. Thanks.

[–] veroxii@aussie.zone 5 points 1 day ago

"Just put tariffs on it and then Iran has to pay for the increase". /s obviously

[–] Powderhorn@beehaw.org 11 points 2 days ago (1 children)

It's not as simple as that. Most U.S. refineries were designed for a different grade of crude than shale produces. Record output, sure, but we can't do much with it once it's out of the ground in terms of fuels. I'm not familiar with the chemical and plastic workflows, so I can't speak to that also being an issue.

Fracking has helped keep down the price of oil, but only because it's a global market, and other countries are better equipped to refine what we're producing.

[–] FaceDeer@fedia.io 3 points 2 days ago

Trump can fix that by slapping 200% tarriffs on gasoline imports, then the refineries and the oil wells to feed them will just naturally materialize.