While we have faced disruptions in the past, this one by far is the biggest crisis the region's oil and gas industry has faced. Aramco has been unable to ship crude cargoes out of the Gulf due to the disruption, but it hopes to meet customer demands by flowing crude through the east-west pipeline to the Red Sea port of Yanbu where it could be shipped to buyers.
So we have sanctions on some countries. We're going to take those sanctions off until the strait [of Hormuz] is up. He declined to provide further details. The move could mean a further easing of sanctions on Russian oil, Reuters reported, citing multiple sources, which in turn could complicate efforts to punish Moscow for its war in Ukraine.
About 20% of the world's oil and liquid natural gas pass through the strait, and the sudden traffic halt has sent prices soaring. But that spike also promises a massive payday for any ships willing to make their deliveries. Freight rates have soared to record highs, and a very large crude carrier heading from the strait to China can earn about $500,000 in revenue per day.
Doubling down on renewables is, yes, right for climate change, it's, yes, right for jobs, it is also essential because we keep on seeing these lived examples of how instability, through regional instability, is creeping into our energy prices, for which the British Government has no agency.
