Iran’s Strait of Hormuz Threat Could Send Oil Prices Soaring to $130

Geopolitical tensions in the Middle East have reached a boiling point as former Iranian Economy Minister Ehsan Khandouzi calls for Iranian control over the Strait of Hormuz, the world's most critical oil transit chokepoint. Approximately 20 million barrels of oil pass through daily, representing 30% of global seaborne crude and 20% of LNG trade.

ING commodity strategists Ewa Manthey and Warren Patterson warn that any disruption could trigger an oil price surge to $120-$150 per barrel, with Deutsche Bank noting Gulf oil's pivotal role in global energy markets. The escalation follows Israel's recent air strikes on Iran, further straining regional stability.

Market analysts observe that Brent crude volatility has already intensified, with the potential supply shock threatening to Ripple through global markets. Qatar's LNG exports face particular risk, given their heavy reliance on Hormuz transit routes.