Iran Conflict Threatens Oil Supply: What It Means for Poland

Thus, any activity in the Middle Eastern region particularly, affecting Tehran, threatens the world’s fuel situation directly. For one, it is the potential closure of the Strait of Hormuz, the narrow channel through which around 17 to 20 million crude oil barrels daily flow, or 20% of the global supply and one-third of sea-bound trade.

Iran’s exports but also the ones of Iraq, the UAE, Kuwait, and Saudi Arabia go through. The global market is beginning to react to the threat. As of June 23, the Brent crude oil price was exceeding $77 for a barrel 11% above the June 13, opening price.

Eventually, the integration of the United States put on the edge might send it even higher, according to Goldman Sachs analysts, who project that a one-month Hormuz-level blackout followed by an 11-month 10% output reduction might raise it to $110. They also predict a 52% chance of the strait closing before the year-end.

Consequently, it would lead to oil markets tremors and severe economic implications globally. Poland, a country heavily dependent on oil supplies, might face significantly higher fuel prices. Although the country does not import Iranian oil, the global market impact affects Polish refineries’ operation and the prices in the local gas station networks.

If the situation receives further escalation, Polish people should expect rising fuel prices, correspondingly, higher delivery fees, and, finally, the price of goods and services. It stresses the unity of the energy market worldwide and the link of such world players as Iran with local consumption phenomena.