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Iran conflict: Why has oil stayed near $100 a barrel?

Iran conflict: Why has oil stayed near $100 a barrel?

Summary

The conflict involving Iran has disrupted about 20% of the world’s energy supply for over 100 days. Despite worries, oil prices have stayed near $100 a barrel because countries used reserves, found other delivery routes, and demand decreased, but experts warn the situation could worsen and affect the economy until 2027.

Key Facts

  • The Iran conflict has lasted more than 100 days.
  • Around 20% of global energy supplies are disrupted.
  • Oil prices are currently around $100 per barrel.
  • Analysts fear prices could rise above $200 per barrel if the Strait of Hormuz remains closed.
  • Countries have released oil from their strategic reserves to ease supply problems.
  • Exporters have found alternative paths to deliver oil.
  • Lower demand for oil has helped prevent price spikes.
  • The OECD says the economic effects may last until 2027, even if the conflict ends soon.
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