Putin's "bombshell" on oil production dependent on the Strait of Hormuz

 

Russian President Vladimir Putin, quoted by RT, said that oil production dependent on the Strait of Hormuz could stop completely within a month.

He warned of the serious risks that a clash between the US and Israel and Iran could pose to the global energy market.




Last year, about a third of the world’s seaborne oil exports passed through the strait, Putin said at a government meeting on global energy markets on Monday.

“This corresponds to about 14 million barrels per day, and 80% of it went to the countries of Asia and the Pacific,” he said, adding that “now, this route is de facto closed.”

Traffic through the strait has reportedly dropped by 80% in the past week, after the US and Israel launched a bombing campaign against Iran, provoking retaliation from Tehran, RT reports.

Several tankers were affected in the exchanges, it is noted.

The developments pushed the price of crude oil above $100 and raised expectations of emergency energy measures from the EU and other major economies, the Russian media concludes.