Three Weeks into the US-Iran War: Who is Profiting and Who is Paying?
Three weeks after the U.S. and Israel launched military strikes against Iran, the conflict has severely disrupted global energy markets. The blockade of the Strait of Hormuz cut off 20 million barrels of daily oil transit, with IEA reporting a net loss of 11 million barrels per day—exceeding the combined impact of the 1973 oil embargo and 1979 Iranian revolution. Over 40 energy facilities across the Middle East were damaged, and global gas supply fell by 140 billion cubic meters.
Russia emerged as a key beneficiary: its Urals crude price surged nearly 80% from under $60 to around $90 per barrel, narrowing the discount to Brent. Sanctions-era price caps effectively collapsed as India increased fossil fuel purchases from Russia by 48% in early March. Russia earned an additional €672 million in oil revenue in just two weeks.
U.S. consumers faced a 33% spike in gasoline prices, with jet fuel costs rising over 60%. United Airlines cut flights, warning of potential $110 billion in added annual costs if oil hits $175/barrel. Global airlines from Delta to Qantas raised fares or reduced capacity. Even gig economy platforms like DoorDash began offering fuel subsidies to drivers. With a U.S. sanctions exemption on Russian oil set to expire April 11, further market volatility is expected.
marsbit03/24 05:18
