Iran war disrupts oil and gas flows, highlighting energy security risks
AP News • • business
Key Points:
- The ongoing war around the Persian Gulf is severely disrupting global energy trade, particularly affecting oil and LNG shipments through the Strait of Hormuz, a critical chokepoint for about a third of seaborne crude oil and a fifth of global LNG.
- Asia, heavily reliant on imported fuel via the Strait of Hormuz, faces significant risks as prices surge, with Brent crude reaching $84 per barrel, the highest since July 2024, prompting the U.S. to consider naval protection and risk insurance for shippers.
- China and India, the largest and third-largest crude oil importers respectively, face economic strain from sustained price spikes, although China has diversified sources and strategic reserves, while India’s limited reserves make it vulnerable to rapid deterioration in
