Bloomberg: Saudi Arabia, the world's largest oil exporter, has cut its oil supply by half due to the closure of the Strait of Hormuz
As a result, Brent crude futures on London's ICE Futures exchange surged 42.7% in March, reaching $103.97 per barrel. This price increase marks the highest monthly rise in 35.5 years—the previous record was set in September 1990, when oil prices spiked by 46.17% in a single month.
Continued blockade of the Strait of Hormuz could lead to aviation fuel shortages in Europe as early as May.
The ongoing conflict with Iran is causing daily global losses of millions of barrels of petroleum products. Prices for various refined products—including aviation fuel—have risen far more sharply than crude oil prices. Some airlines have already canceled flights.
Additionally, due to Japanese domestic airlines increasing fuel surcharges starting in June, ticket prices for flights to Japan will also rise. All Nippon Airways and Japan Airlines will pass on the additional costs to fares, with prices potentially doubling depending on the route.
As this critical maritime route remains blocked, pressure on Europe’s energy markets will continue to intensify. Since the outbreak of conflict in the Middle East, energy prices have increased by 60%–70%.
Bank of Greece Governor Yannis Stournaras stated, “It’s too early to conclude that a recession is inevitable. But if the conflict with Iran continues and oil prices break through $150 per barrel, anything is possible—even an economic downturn.”
The blockade has also affected Australia. Prime Minister Albanese urged citizens to use public transportation whenever possible to cope with fuel shortages and asked drivers not to overfill their tanks.
Original article: toutiao.com/article/1861278012859404/
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