The conflict in the Middle East continues to cause great fear with the incorporation of Iran into the attacks and the possible imminent response of Israel targeting the Persian country’s oil facilities. Something that caused the price of oil to rise. Your transportation will also become more expensive. because it must pass through areas which are currently experiencing conflicts.
In fact, one of the most important routes for global crude oil trade is the one known as the Strait of Hormuza sea passage that connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. And this instability in the Middle East has consequences on our pockets.
The tension arises between Israel, Gaza and Lebanon, but also involves Iran, a regional power, whose coasts with those of the United Arab Emirates and Oman This is what constitutes the Strait of Hormuz.
About this trade route transits 30% of global maritime trade and also a large part of the hydrocarbons of the Persian Gulf, a region containing two-thirds of the world’s oil reserves and a third of the world’s gas companies.
If this maritime route were blocked, there are already estimates that the price of a barrel of Brent – the benchmark for crude oil in Europe – could double and reach up to $150 per barrel.
Not far from the Strait of Hormuz is the Bab al-Mandeb. 12% of world maritime trade passes through this, the previous passage towards the Suez Canal and in the waters of which Houthi attacks have taken place in recent months, with the boarding of cargo ships.
But how does this affect us? In Europe precisely, now that we have managed to curb inflation, it is estimated that each lasting 10% increase in the price of hydrocarbons raises the CPI (consumer price index) by five tenths.
