The Israeli war on Iran is causing concerns among crude traders about the potential impact on the oil market.

The conflict could lead to a major price spike, as concerns about the Strait of Hormuz, which Tehran has vowed to close, are raised.

The US sanctions on Iranian oil shipments may also resume. The “oil-disruption scenario” would be if conflict spread to Iran, but this seems unlikely now.

Saudi Arabia and Russia’s production cuts have drained global petroleum supplies, pushing Brent prices to almost $100 a barrel last month.

The conflict may affect supply and prices, as Iran’s exports have reached a five-year high.

The conflict may also push President Biden’s government to crack down on China-bound cargo shipments.