00:00Oil prices are surging and Iran is at the center of the spike.
00:03And what's happening right on the Strait of Omos could hit your wallet, your fuel bill
00:07and even global inflation.
00:08On Monday, oil prices jumped by as much as 13 percent, the first trading day after the
00:13US and Israel attacked Iran and killed its supreme leader Ali Khamenei.
00:18Iran hit back, striking Israel and seven other countries in the region.
00:21Tankers have been hit and shipping companies are pulling back.
00:25Many operators, from oil majors to L&D traders, have paused shipments through the Strait,
00:30bringing commercial traffic to a virtual halt.
00:32Why does this matter?
00:33Because this tiny stretch of water moves over 20 percent of the world's oil.
00:37It connects the Persian Gulf to the Gulf of Oman and the Indian Ocean.
00:41It's a vital route for top oil-producing countries like Saudi Arabia, the United Arab Emirates,
00:46Oman and Iran.
00:47The Strait of Omos is one of the world's most vulnerable choke points.
00:51In 2023, 20.9 million barrels of oil passed through it every day, more than double the
00:578.8 million that passed through the Suez Canal.
00:59Only Saudi Arabia and the UAE even have pipelines that bypass this key waterway.
01:05Together, they can reroute just 2.6 million barrels per day.
01:08Not nearly enough in a major disruption.
01:10Experts warned that a worst-case scenario, a full closure of the Strait of Omos, could slam
01:15global oil supply and drive inflation higher.
01:17And with tensions rising across the Middle East, analysts say a prolonged disruption to
01:22traffic here could send oil prices above $100 a barrel.
01:25Club Gallagone.
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