As the memorandum of understanding negotiated between the US and Iran unwinds and military actions resume on both sides out in the Strait of Hormuz and beyond, the ramifications for the world oil supply once again come into sharp focus. With inventories of oil much lower than where they were when conflict broke out in February, the chances of a more major energy shock have once again increased.
The next few weeks will tell the tale. Oil is moving upward again and stands at around $102 a barrel as we go to press. It then dropped to around $92.
Continuing gyrations in the commands from the top on the American side of the conflict help fuel the volatile oil market.
