The US North-East is facing a heating crisis with record oil prices due to the conflict with Iran, prompting a reassessment of natural gas pipeline opposition. A US naval blockade has depleted Iran's offshore crude reserves and caused a $25 billion revenue loss, forcing Chinese refiners to seek alternative suppliers in Brazil and West Africa. Despite increased non-Iranian oil exports under US protection, the IRGC has claimed attacks on several vessels in the Gulf, while Tehran warned of potential strikes against US regional bases.
The Revolutionary Guards navy warned it would target U.S. bases if Washington facilitated tanker passage, as restrictions on oil flows have increased the risk premium in prices.
Read the full storyReuters reported that a container ship and a dry bulk carrier sank near the strait, which accounted for about 25% of seaborne oil trade before the war, according to the International Energy Agency.
The U.S. blockade prevented replenishment of crude sold to Chinese refiners, while Washington expanded sanctions to a law firm and shipping agents in the UAE and Singapore accused of aiding Iran's shadow fleet.
The Energy Information Administration expects average spending by households using heating oil to reach $2,115, while the Energy Department offers a reserve exchange amid low East Coast inventories.