Fuel
Experts Contemplate $200 per Barrel Oil as War Drags On
Analysts are anticipating record prices and major impacts for aviation
Fuel port with oil tankers
With a large portion of the world’s oil supplies tied up by conflict in the Middle East, global shipments are being affected. © AdobeStock

With the price of oil rising in response to the U.S. and Israel’s attack on Iran, and with the conflict now lasting more than a month, industry analysts at Macquarie Group are warning that the price per barrel has a 40% chance of hitting $200 if the conflict drags on through June. For refined petroleum products such as jet fuel, prices could rise even higher, they said.

According to the report, the conflict has resulted in access to 13% of the world’s global oil supply being choked at the embattled Strait of Hormuz in the Persian Gulf. “The current hit to supply is already bigger than the peak in either of the 1970s oil shocks, or the first two Gulf Wars,” Macquarie’s analysts said.