Oil Market Set for Tumultuous Week as Kharg Attack Raises Stakes

(Bloomberg) -- Global oil markets face another week of turmoil after a US attack on Iran’s main export hub heightened risks to supply across the Middle East, and deepened concerns over a conflict that’s already upended energy flows.

President Donald Trump said late on Friday that US forces had struck military targets on the vital Kharg Island and threatened to extend attacks to energy infrastructure if Tehran interferes with transit through the Strait of Hormuz — the narrow waterway connecting the Persian Gulf with the world. Traffic through Hormuz has all but halted since the war began and Iran’s supreme leader said last week the strait should remain shut if the conflict continues.

With every passing day, the impact of the conflict on the oil market is becoming more acute. While countries with the ability to do so are racing to find workarounds for Hormuz, the conflict has already created a massive supply disruption that is sending premiums for real-world barrels and fuel prices soaring.

Iran said strikes on oil infrastructure at Kharg Island would lead to retaliation against US-linked energy facilities in the region. Trump said Iran is ready to make a deal to end the war but the US wants better terms, signaling no letup in the conflict.

https://finance.yahoo.com/news/oil-market-set-tumultuous-week-100738952.html