Sustained high crude oil prices to hurt downstream players

The Iran-Israel conflict entered a more intense phase with the US carrying out airstrikes on Iran’s nuclear facilities over the weekend. The heightened tensions have led to further spikes in crude prices with Brent crossing the $81 per barrel or bbl mark.

 

The fears centre around the possibility of supply routes being interdicted and hence, supply being disrupted, rather than Iranian oil being taken off the market.

 

Iran’s exports are mainly to China and the quantum of Iranian exports could be compensated for by Saudi Arabia and other OPEC-plus nations. Net-net, even with Iranian supply off the market, there could