Internal projections being done by officials in Saudi Arabia show that crude oil prices could surge past $180 per barrel in case the Iran war continues until late April, as per a report by the Wall Street Journal.
Many officials in Saudi Arabia are treating the projection as a base-case scenario, reflecting that the jolt in the energy markets may live longer than anticipated. The projections are based on several strikes on key oil producing infrastructure across the Gulf countries. On Thursday, Iran attacked several oil facilities as revenge for strikes on its South Pars Gas Field.
The report highlighted how counter-attacks were carried out on Qatar's Ras Laffan energy hub and other West Asia oil infrastructure, including Saudi facilities at Yanbu. The Yanbu facility holds a lot of significance as it connects to a pipeline designed to bypass the Strait of Hormuz, a critical chokepoint through which roughly one-fifth of global oil supply flows.
The war, which entered its 21st day on Thursday, seems to be getting more intense with both Israel and Iran targeting key energy levers like gas fields, oil refineries and manufacturing units all across the Middle East.
ALSO READ: Iran Attacks Israel's Haifa Oil Refinery As 'Revenge' For Targeting South Pars Gas Field
As part of its retaliation, Iranian strikes hit Israel's Haifa oil refineries on Thursday. The Israeli defence forces had struck Iran's South Pars gas field on Wednesday. The unit is the world's largest gas field and its significance for Iran's domestic energy needs is at par with the Haifa refineries' importance to Israel.
Hormuz has become a hotbed for attacks ever since the Iran war began on Feb. 28, straining oil supplies for countries all over the globe. Gulf countries, such as the UAE, Bahrain, Qatar and Kuwait, have found themselves in the thick of the crossfire. The war has resulted in loss of civilian lives in most of these countries.
The war has resulted in one of the largest supply disruptions in the history of the global oil market. The global oil supply is likely to remain disrupted until the Strait of Hormuz is released from its chokehold.
ALSO READ: US-Israel-Iran War Live News Updates: Trump Calls NATO 'Cowards' For Not Joining Iran Fight
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