00:00There's already been a lot of destruction to infrastructure and to that point, even just over the course of this
00:06morning so far, we've heard about that Iranian strike on the Kuwaiti crude carrier in the Dubai port.
00:12That was a fully laden tanker there. We've seen damage to the hull and oil on board as well, as
00:17well as warnings and alerts being issued for residents as well.
00:20We're now just getting an update on that situation Dubai responding to the drone incident affecting the Kuwaiti oil tanker,
00:27saying that they're trying to bring the fire on the tanker under control.
00:31This comes at a time as we continue to see further threats from the Trump administration if the Strait of
00:37Hormuz is not reopened, if Tehran doesn't come to the table for negotiations, which President Trump says that they are
00:44doing so.
00:45But there's just a great deal of uncertainty that we're contending with at the moment.
00:49Well, Bloomberg Economics estimates that if the Iran-backed Tehutis begin attacking tankers in the Red Sea, oil prices could
00:56surge towards $140 per barrel.
00:58Let's bring our Bloomberg Oil and Gas reporter, Dan Murtoch.
01:02Dan, really good to have you with us.
01:04So those are the estimates. It's interesting.
01:06We are seeing that pretty quick catch up when it comes to WTI at the moment, just reacting to the
01:12tanker being attacked.
01:16Yeah, you know, we have so much happening right now in the oil markets.
01:20Every time you go to bed, you wake up and it seems like there's five new developments.
01:24Bloomberg reported that Iran is talking to the Houthis about disrupting shipping in the Red Sea,
01:29which would be really impactful because the Saudi Arabians have been pushing oil from the Persian Gulf across to the
01:36port of Yambou,
01:36where they've been able to ease some of that pressure off the Strait of Wormuz.
01:40But now if that infrastructure gets attacked, you're really talking like $20, $30, $40 spike in oil prices would be
01:48completely within line.
01:50And, you know, traders continue to look for signs of any movement toward an off-ramp, toward a de-escalation.
01:57But instead what we're getting is the opposite.
01:59We're getting, you know, the Strait of Wormuz is still largely choked off except for tankers either connected to or
02:07friendly with Iran.
02:09You know, if you look around the Asia-Pacific region, you're seeing, you know, petrol stations without fuel in Australia.
02:16You're seeing in Korea asking people to reduce the amount of time they're driving.
02:21You know, we're really seeing the impact of a supply shock already on consumers.
02:26And oil prices have been relatively sanguine.
02:29We're still sitting there in the low 100 levels.
02:32And so there's a lot of room for this to get much worse much faster if things don't turn around
02:39fast.
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