Gulf oil production could stop in weeks – Putin

Russia has warned that any attempts to destabilize the Middle East will lead to energy price hikes, the president has said

Oil production dependent on the Strait of Hormuz could come to a complete halt within a month, Russian President Vladimir Putin has said. He warned about the serious risks that the US and Israel’s conflict with Iran could pose to the global energy market.

Last year, around a third of the global sea-borne oil exports went through the straight, Putin said at a government meeting on the global energy markets on Monday. “That is around 14 million barrel per day and 80% of that went to the Asian and Pacific nations,” he stated, adding that “now, this route is de-facto closed.”

Traffic through the straight has reportedly dropped by 80% over the past week after the US and Israel launched their bombing campaign against Iran, prompting retaliatory strikes from Tehran. Several tankers were hit in the exchanges. The developments pushed crude above $100 and prompted expectations of emergency energy measures from the EU and other major economies.