· 2 min read
illuminem summarises for you the essential news of the day. Read the full piece on Wall Street Journal or enjoy below:
🗞️ Driving the news: Israel and Iran have exchanged strikes targeting each other's energy infrastructure since the weekend of June 13–15
• Israel hit Iran’s South Pars gas field, Fajr-e Jam refinery, and Tehran oil depot, while Iran retaliated with a missile strike on Haifa refinery
• The clashes, though limited, caused a 7–11 % jump in oil prices — Brent hit ~$78–79/barrel, its highest since January — while tanker movements near the Strait of Hormuz were disrupted
🔭 The context: This marks an unprecedented escalation: energy assets are being directly targeted, expanding the conflict from military and nuclear spheres into the global economy
• Iran's control over ~20% of global oil flows via the Strait of Hormuz gives it leverage
• Past skirmishes rarely affected global supplies — yet regional analysts warn this could be different
🌍 Why it matters for the planet: Energy infrastructure is a critical climate and economic asset; disruption risks cascading effects on emission-intensive sectors
• The price surges raise inflationary pressure and could hamper energy transition funding
• Further escalation could threaten supply stability just as demand rises with summer peak and emerging-market recovery
⏭️ What's next: Markets will watch closely for Iran’s planned threat to close the Strait of Hormuz
• Oil prices could breach $100/barrel in such a scenario, triggering policy responses in G20 nations to secure supply lines or release reserves
• Diplomacy efforts may intensify ahead of any potential U.S. intervention decisions and possible de-escalation talks later in June
💬 One quote: “The market remains sensitive ... Brent crude oil increased by 7 % overnight following Israel’s attacks,” highlighted strategic analysts
📈 One stat: Tanker traffic through the Strait of Hormuz accounts for roughly 18–20 million barrels per day — about 20 % of global oil consumption
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