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Israeli Strike on Iran’s Oil Fields and Infrastructure: What Would That Mean
Iran’s oil exports, which total around 1 million barrels per day, significantly contribute to the global market.
Production has taken a hit over the years thanks to sanctions, mismanagement, and maturing fields.
Regardless, a million barrels per day could disappear from the markets, meaning a $10–15 increase per barrel on top of the war premium.
The Israelis could attack Kharg Island, Iran’s largest oil terminal. Located 15 miles off the country’s northwestern coast, it handles more than 90% of its crude exports.
One way for Israel to respond to the Iran missile strikes in Israel in September and October 2024 was by hurting the Iranian economy with a retaliatory strike on their infrastructure related to the oil industry.
It’s not a global catastrophe, but it will still hurt. The gravity of the situation cannot be overstated.
The US is fairly insulated from shocks to the global oil markets, so there’s not much to be worried about.
Should this get really bad, the US president can authorize a suspension of crude exports, a measure that would create a glut of oil in North America similar to what we’ve seen with natural gas prices.
