Here's what the military conflict in Iran could mean for oil and gas prices

The decline came as experts speculated that Iran is unlikely to close the Strait of Hormuz, a major commercial waterway that the country partly controls and that is strategically vital for the flow of crude into global markets. "In practice, Iranian efforts to 'close' the Strait could encompass a number of actions including attacking and detaining ships using the waterway, impeding navigability through the strait and, at the most extreme, laying mines in the sea," noted David Oxley, chief climate and commodities economist at Capital Economics, in a report. Although energy experts believe a closure of the Strait is unlikely, noting the adverse economic and geopolitical impact on Iran, they underline that a disruption to the flow of oil through the passage would send energy prices soaring.

Author: Aimee Picchi

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