"For all of Trump saying, 'Hey, you know, we took out Khamenei, we knew exactly where he was,'-apparently we didn't do the same for Iran's attack capabilities. It seems like our plan was to take out Khamenei and then hope for the best."
"Iran controls the Strait of Hormuz, one of the most important shipping routes in the world. One out of every five barrels of oil travels through the strait. Major members of the Organization of the Petroleum Exporting Countries (OPEC), the world's dominant oil and gas cartel, rely almost entirely on the strait to get their product out of the region."
"As long as I have been in the oil market, Iran and the closure of the Strait of Hormuz has been kind of the ultimate risk scenario for prices. Usually, OPEC would respond to an international crisis that involves oil by increasing production."
Oil prices jumped nearly 13 percent to almost $80 per barrel following US and Israel attacks on Iran over the weekend. Analysts predict prices could reach over $100 per barrel depending on how the conflict develops. The market had already priced in US-Iran tensions for months, limiting an even sharper increase. However, uncertainty about US strategy and Iran's response capabilities creates additional volatility. Iran controls the Strait of Hormuz, a critical shipping route through which one in five barrels of global oil passes. OPEC members depend almost entirely on this strait for exports. The disorganized US follow-through to initial attacks and potential Iranian retaliation introduce significant unpredictability into oil markets.
Read at WIRED
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