How the world’s most important oil chokepoint could factor into escalating US-Iran tensions

The EIA estimated that 76% of the crude oil and condensate that moved through the chokepoint went to Asian markets in 2018. China, India, Japan, South Korea, and Singapore were thought to be the largest destinations for crude oil moving through the Strait of Hormuz to Asia over the same time period, accounting for 65% of all Hormuz crude oil and condensate flows.

Madani said that while “there may be skirmishes” in the Strait over the coming weeks, it would be “of no interest to anyone” to completely cut off the channel.

Iran has said the White House made a “grave mistake” in giving the order to kill Soleimani, with the Islamic Republic’s supreme leader Ali Khamenei vowing to deliver “severe revenge” to those responsible.

President Donald Trump has since warned Iran the U.S. would strike back if Tehran’s military forces attacked any American person or target following the killing of Soleimani, before adding Washington could do so “perhaps in a disproportionate manner.”

Article source: https://www.cnbc.com/2020/01/06/oil-prices-how-the-strait-of-hormuz-may-factor-into-us-iran-tensions.html