The biggest question facing global energy markets is whether Iran will respond to the U.S. bombing of its nuclear facilities by disrupting the flow of oil and natural gas in the Persian Gulf region.
The economic toll would be steep, including for Iran. That is because a large portion of the world’s oil and liquefied natural gas, or L.N.G., passes through the Strait of Hormuz, a waterway that hugs a portion of Iran’s southern border.
Any attempt to close the strait, which connects the Persian Gulf to the Gulf of Oman, would most likely send oil prices soaring. It would also inflict severe economic damage in Iran because nearly all of the country’s oil exports move through the channel.
The market’s early reaction to the U.S. bombing of three Iranian nuclear sites over the weekend will become clear on Sunday evening, when crude oil futures begin trading at 6 p.m. Eastern time.
U.S. oil prices have climbed around 15 percent in the past two weeks, settling on Friday at $74.93. That is a moderate price by recent standards.
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