Iran War Disrupts Global Oil Supply, Costing $50 Billion
How 50 days of the Iran war led to the loss of $50 billion worth of oil
The Economic Times
Image: The Economic Times
The ongoing conflict in Iran has resulted in a staggering loss of over $50 billion in crude oil production, with 500 million barrels removed from the global market. Analysts warn that the repercussions of this disruption will affect the global economy for months and years to come.
- 01The Iran war has led to a loss of over $50 billion in crude oil production.
- 02500 million barrels of oil have been removed from the global market since the conflict began.
- 03The disruption is equivalent to nearly a month of oil demand for the United States.
- 04Gulf Arab countries experienced a loss of about 8 million barrels per day in March.
- 05Full restoration of oil production and infrastructure could take years.
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Since the onset of the Iran war nearly 50 days ago, over $50 billion worth of crude oil has been lost, equating to 500 million barrels removed from the global market. This disruption is the largest energy supply crisis in modern history, significantly impacting global oil demand. The loss translates to nearly a month of oil consumption for the United States and could represent a 1% cut in Germany's GDP. In March, Gulf Arab countries lost about 8 million barrels per day of crude production, with jet fuel exports from the region plummeting from 19.6 million barrels in February to just 4.1 million barrels in March and April combined. Analysts predict that recovery of oil production and infrastructure could take years due to damage sustained during the conflict.
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The disruption in oil supply is expected to lead to increased fuel prices globally, affecting transportation costs and consumer prices.
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