Higher oil prices due to potential Iran conflict, Strait of Hormuz unlikely to close

From Yahoo Finance: 2025-06-23 12:48:00

Oil prices spiked to a five-month high after surprise U.S. attacks on Iran. The Strait of Hormuz, a key oil transport route, could be closed, disrupting global supplies. Analysts predict a closure is not probable, but if it happens, oil prices will surge, impacting everything from gas prices to inflation.

Rising oil prices could lead to a 0.4% increase in inflation and a 0.1% decrease in economic growth. Oil prices have surged to about $75 a barrel, up 23% from May, affecting gas prices as well. High inflation and slower growth could negatively impact the stock market.

Alternative oil transport routes are limited, with only 30% of flows being able to be redirected. The U.S. gets very little oil from Iran, while China is the largest buyer of Iranian oil, taking nearly 90% of exports. The conflict has already affected global energy markets.



Read more at Yahoo Finance: Oil market awaits Iran response to US attacks. Strait of Hormuz seen unlikely to close.