Oil jumps 10% on Hormuz closure, sparks chatter of $100 oil

Brent crude jumped 10% to around $80 a barrel in over-the-counter trading on Sunday, as analysts warned that prices could climb to $100 after U.S. and Israeli strikes on Iran plunged the West Asia into a new war. Ajay Parmar, director of energy and refining at ICIS, said, “The military attacks themselves support oil prices, but the critical factor is the closure of the Strait of Hormuz.” More than 20% of global oil passes through this key shipping channel. More than 20% of global oil is moved through the Strait of Hormuz. More from World Iran Israel War Live Updates: 8 killed as Iran fires missiles at Israel; explosions reported across Dubai & other Gulf cities. Oil tanker with 15 Indians onboard hit off Oman coast amid Israel–Iran escalation; 4 injured. While some alternate infrastructure could be used to bypass the Strait of Hormuz, the net impact from its closure would be a loss of 8 million to 10 million bpd of crude oil supply even after diverting some flows through Saudi Arabia.

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