With the US and Iran showing resolve to fight a long war, with no side willing to sit at the negotiation table, the chances of a prolonged conflict are high, and so are the chances of an oil crisis 2.0 in the offing. As the war has entered its third week, crude prices have already breached the psychological barrier of USD 100 per barrel. And it is getting worse; with the Strait of Hormuz closed for all practical purposes, and 1,000 oil ships stranded, an oil crisis is inevitable. The world is inching towards an unprecedented oil crisis. To add to it has started attacking oil facilities. Iran’s strikes on energy infrastructure in Qatar and Saudi Arabia, along with its choking of the Strait of Hormuz, have pushed global oil markets into a state of acute anxiety.........

© The Pioneer