The conflict between Israel and Iran, which also saw the U.S. strike Iranian nuclear facilities, has kept global oil and gas markets on high alert and showcased the intrinsic vulnerability of global energy supply chains during wartime. Energy supply chain infrastructure, including Iran’s export facility at Khrag Island, Iran’s threats to close off the Strait of Hormuz, and attacks on a refinery in Haifa have demonstrated the targeting options of the belligerents involved. China relies heavily on energy imports from the Middle East, and the recent conflict poses a serious challenge to Beijing’s energy security, which could prompt the country to consider alternative energy routes over the long term. Should the ceasefire break and fighting resume, Tehran could find itself backed into a corner and attempt to exploit the oil market as leverage, even as the Trump administration actively seeks to lower oil prices.
Iran-Israel Conflict Demonstrated Vulnerability of Global Energy Supply Chains – The Soufan Center
