US, Israel attack Iran in a joint operation: What does it mean for the global oil market?

The US and Israel launched strikes on Iran, raising risks to global oil supplies. Iran produces 3.3 million barrels daily and controls access to the Strait of Hormuz, a key oil route. Companies have paused shipments, heightening fears of disruption and rising crude prices.

Tehran is responsible for nearly 3.3 million barrels of oil per day, which is nearly three per cent of global output, making it the Organization of the Petroleum Exporting Countries' (OPEC) fourth-largest producer. However, its strategic location gives it far greater influence over global energy supplies than the production figures alone suggest.

Iran borders one side of the Strait of Hormuz, a crucial shipping route through which roughly 20% of the world’s crude oil passes, including supplies from major producers such as Saudi Arabia and Iraq. The oil markets are closed for the weekend, and there has been no information on whether the attacks on Tehran and the retaliatory strikes launched across the Middle East targeted any energy assets.