Reported 2 days ago
The recent escalation of tensions between Israel and Iran has sparked concerns over a potential disruption in Middle East oil supplies, with oil prices surging by up to 13%. Analysts indicate that OPEC+ may struggle to compensate for any major drop in Iranian oil production, as only Saudi Arabia and the UAE have sufficient spare capacity. With Iran producing approximately 3.3 million barrels per day, fears have arisen that if retaliatory actions occur, it could severely impact global oil flows, particularly through vital shipping routes. Furthermore, existing output restrictions within OPEC+ and the dwindling spare capacity due to previous production cuts add to the uncertainty in the oil market.
Source: YAHOO