Iran vs. U.S.: What About the Oil?

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.


Ayatollah Ali Khamenei, Iran’s supreme leader, has now warned that should the U.S. attack, Iran will strike U.S. interests around the world. In that case, what would happen to Middle Eastern oil, which flows through the Iranian-controlled Straits of Hormuz on its way out of the Persian Gulf, into the Arabian Sea, and on to world markets?

Iran might shut down the Straits of Hormuz, through which 20 percnt of Middle Eastern oil flows. Or, on the other hand, because it is so dependent on oil revenue, it might not. Nobody knows.

Beginning a year ago, Japanese oil refineries, which obtain 14 percent of their supply from Iran, began to diversify to Saudi and Kuwait crude. Japan must import literally all its oil and gas from abroad and Iran is the third largest supplier. Iran is the fourth largest supplier of oil to South Korea. China buys substantial and growing amounts of oil from Ira. Most Iranian oil exports go to Asia, followed by Europe, where major purchasers include Italy, Turkey, and France.

“When Bush announced that he would fill our Strategic Petroleum Reserve last spring and also expand it, crude prices went up by $1.50 in just 20 minutes because of speculation that the U.S. might attack Iran. If the US attacks and oil prices rise, Bush would likely release oil from the SPR to soften the blow to the oil markets,” Matt Piotrowski, an oil market analyst at the Oil Daily, told Mother Jones.

FOLLOW THE MONEY

Corporations and billionaires don’t fund journalism like ours that exists to shake things up. Instead, support from readers allows Mother Jones to call it like it is without fear, favor, or false equivalence.

And right now, a longtime friend of Mother Jones has pledged an incredibly generous gift to inspire—and double—giving from online readers. That's huge! Because you can see that our fall fundraising drive is well behind the $325,000 we need to raise. So if you agree that in-depth, fiercely independent journalism matters right now, please support our work and help us raise the money it takes to keep Mother Jones charging hard. Your gift, and all online donations up to $94,000 total, will be matched and go twice as far—but only until the November 9 deadline.

$400,000 to go: Please help us pick up the pace!

payment methods

FOLLOW THE MONEY

Corporations and billionaires don’t fund journalism like ours that exists to shake things up. Instead, support from readers allows Mother Jones to call it like it is without fear, favor, or false equivalence.

And right now, a longtime friend of Mother Jones has pledged an incredibly generous gift to inspire—and double—giving from online readers. That's huge! Because you can see that our fall fundraising drive is well behind the $325,000 we need to raise. So if you agree that in-depth, fiercely independent journalism matters right now, please support our work and help us raise the money it takes to keep Mother Jones charging hard. Your gift, and all online donations up $94,000 total, will be matched and go twice as far—but only until the November 9 deadline.

$400,000 to go: Please help us pick up the pace!

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate