Gulf nations have found ways to keep oil flowing through the Iran war, but the costs are mounting

Gulf nations have managed to keep oil flowing despite Iran shutting down the Strait of Hormuz, but the costs are mounting. The initial fear of skyrocketing prices was largely unfounded, with oil prices reaching around $100 per barrel, higher than before the war but not as catastrophic as initially anticipated. This resilience is largely due to Gulf producers quickly finding alternative routes and utilizing unused pipeline capacity.

However, these workarounds come at a significant cost and may not be sustainable in the long term. The drawing down of existing commercial oil stocks, especially by China, has helped keep prices in check, but this cannot continue indefinitely. Moreover, Iran's continued attacks on key oil facilities pose a potential threat to the stability of the oil supply.

Brief written by urgent.news from Winnipeg Free Press's own syndicated text. Machine-written — may contain errors; check the original before relying on it.