President Trump recently blamed Ukrainian attacks on Russian refineries for causing a spike in diesel prices, but analysts say the Iran war is probably a bigger factor.
Saudi Arabia has diverted huge amounts of oil to the Red Sea since the Iran war began, but now the Iranian-backed Houthi militants say that they intend to block that route.
For a mega-refinery in Ulsan, South Korea, a top exporter of jet fuel to the West Coast of the United States and other places, weaning off Middle Eastern oil is no small feat.
Smaller U.S. oil producers are starting to drill more wells, but big companies like Exxon Mobil and Chevron have said they are not changing their plans as a result of the war with Iran.
Some analysts said the main international oil price, which was up 6 percent on Monday, could climb much higher in the coming weeks if the Strait of Hormuz doesn’t reopen.
An oil refinery in Carson, Calif. The possibility of continued fighting has raised concerns about how long the world’s stockpiles of oil and fuels will last if the Strait of Hormuz does not reopen.
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