Global oil and fuel markets are ill prepared for a resumption of fighting between the US and Iran, analysts warned.
Crude stockpiles across much of the West are near historically low levels, having been drawn down over the course of the war, while oil prices have jumped following strikes in recent days by the US against Iran, and by Tehran against US allies across the Gulf.
Even when crude supplies recover, fossil-fuel products such as diesel, gasoline, and jet fuel are likely to be in short supply, JP Morgan said in a note to clients: Middle East oil refineries will take time to be fully repaired after suffering damage during the conflict and Russian refining capacity has been hammered by Ukraine.