The oil market is getting more unpredictable. People are worried that consumers will have to pay more for fuel if the problems in the Strait of Hormuz are not solved.
For a time, the world has been using stored oil and producing more oil in other places to make up for the lack of oil coming from the Strait of Hormuz. Now the stores of oil are getting smaller. This means that if there are problems, it will be harder to deal with them.
Iran says it is in control of the Strait of Hormuz. This is not what US President Donald Trump says. He says that the US is in control of the Strait.
Not many ships are going through the Strait of Hormuz. This is because shipping companies are worried about their safety. The International Energy Agency says that the high price of fuel and the problems in the Strait of Hormuz are already affecting how much oil people are using.
The price of oil is not a problem for people who buy petrol. It also affects the cost of flying, transporting goods, making things in factories and producing chemicals. All these things cost more when the price of oil is high.
The main problem is that it is not safe for ships to go through the Strait of Hormuz. There have been attacks on ships and the use of drones and missiles. This makes the cost of insurance high. It stops ships from going through the Strait.
The US and Iran are not able to do what they want. The US is restricting Iran’s access to the sea, and Iran can still cause problems for ships near its coast.
The big question now is how long the world can keep using stored oil and alternative supplies if ships cannot go through the Strait of Hormuz.
Until ships feel safe going through the Strait, the price of oil will depend on what happens in the Gulf. The Strait of Hormuz is an important place for the oil market. The oil market is watching the Strait of Hormuz and the Gulf closely.