Iranian missile tests. Reports of covert U.S. operations inside the country. Israeli military exercises designed to simulate an attack on Iran. The signs are unmistakable: Tensions in the oil-rich Persian Gulf are heating up.
And that matters to oil markets.
Iran sits atop the Persian Gulf, through which pass 20% of all the world's oil. Its missiles are also within easy striking distance of the giant oil fields of Iraq, Kuwait and Saudi Arabia. Together, the Middle East produces 25 million barrels of oil a day, or 30% of the world's total daily production of 86 million barrels...
A successful attack on Abqaiq, he said, would cause sustained oil prices of $200 to $250 a barrel.
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