Oil markets remain under pressure as tensions escalate in the Strait of Hormuz, one of the world’s most critical shipping routes for global crude supplies. Analysts warn that while neither the United States nor Iran has a clear legal right to block the waterway, any disruption could have serious consequences for global supply chains and fuel prices.
The Strait is a vital passage for a significant share of the world’s oil exports, and even the risk of interference is already adding volatility to markets.
Speaking to VOC News, Director & Chief Economist at Econometrix, Dr Azar Jammine, said the direct impact on the United States is limited due to its self-sufficiency in oil production.
“Clearly, much of it doesn’t go to the United States; the US is not directly affected in terms of the supply of oil. It indirectly is affected through prices because oil and petrol are priced globally,” he said.
Dr Jammine added that the ripple effects are still significant for other economies, including South Africa. He noted that South Africa is more exposed to diesel imports linked to the region, which is contributing to rising costs locally.
“That’s our Achilles heel. That’s why the diesel price is surging far more than the petrol price at the moment and set to possibly hit 40 rand a litre next month,” he warned.
He further highlighted China’s heavy reliance on the region, stating that it imports about 16% of its oil from Iran, which accounts for nearly 90% of Iran’s total oil exports.
Experts say continued instability in the region could keep global energy markets on edge in the weeks ahead.
Listen to the full interview below:
VOC News
Photo: Pixabay
