Oil prices swung back above $105 a barrel amid signs of protracted disruptions to global energy flows and dwindling optimism of a ceasefire. Tehran dismissed the 15-point US proposal to pause the war and issued its own counterproposal. The economic fallout from the conflict is biting, with fuel shortages spreading worldwide and companies grappling with the consequences of rising prices and disrupted supply chains.
Analysts have revised down the global LNG outlook for this year. Iraq’s oil production has plummeted as the country is unable to export crude through the Strait of Hormuz and storage levels are reaching capacity. Meanwhile, Reuters estimates that at least 40% of Russia’s oil export capacity is at a halt following Ukrainian attacks on energy infrastructure and the seizure of tankers. The Trump administration is looking at what the fallout for the economy could be if oil prices spiked as high as $200 a barrel, according to Bloomberg, though the White House has denied it is doing so.