Iran, Israel and Oil
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The Iraqi foreign minister warned on Saturday that the Strait of Hormuz might be closed due to the Israel-Iran confrontation.
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Barchart on MSNCrude Prices Surge on Security Risks in IraqWednesday closed up +3.17 (+4.88%), and July RBOB gasoline (RBN25) closed up +0.0788 (+3.77%). Crude oil and gasoline prices rallied sharply on Wednesday, with crude posting a 2-1/4 month high and gasoline posting a 3-week high.
Tensions at the Strait of Hormuz risk 20M bpd in crude oil flow, fueling a sharp rally in oil futures and boosting market volatility.
a vital shipping route for oil, is located near this region. Although the price spike initially seemed to reflect these geopolitical risks, analysts believed the surge might have been overdone.