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Yahoo
an hour ago
- Business
- Yahoo
Israel-Iran crisis: How vital is the Strait of Hormuz for oil market?
The flare-up of tensions between Israel and Iran has reignited concerns over the security of the Strait of Hormuz, a vital artery for the global energy market. This narrow stretch of water, just 29 nautical miles wide at its tightest point, funnels nearly a third of the world's seaborne oil and a fifth of global LNG. The U.S. Energy Information Administration (EIA) calls it the "world's most important oil chokepoint," underlining the strategic importance of the passage that links the Persian Gulf with the Gulf of Oman and the Arabian Sea. Investors and analysts are weighing the implications of a potential disruption in this narrow but critical waterway. What happens if the Strait of Hormuz is suddenly sealed off? Following Israeli attacks on Iran, Iranian officials have raised the spectre of closing the Strait—triggering a sharp surge in crude prices. According to the International Energy Agency (IEA), around 20 million barrels per day (mb/d) of crude oil and refined products passed through the Strait of Hormuz in 2023, representing nearly 30% of total global oil trade. Most of this volume—around 70%—was bound for Asia, with China, India and Japan among the largest recipients. While alternative pipeline infrastructure exists, it is limited. The IEA estimates that only 4.2 mb/d of crude oil can be rerouted via overland routes, such as Saudi Arabia's East-West pipeline to the Red Sea and the UAE's Abu Dhabi Crude Oil Pipeline to Fujairah. This capacity represents barely one quarter of the typical daily volume transiting the Strait. 'Any prolonged crisis in the Strait of Hormuz would not only disrupt shipments from key Gulf producers—Saudi Arabia, the UAE, Kuwait, Iraq and Qatar—but also make inaccessible the majority of the world's spare production capacity, which is concentrated in the Persian Gulf,' the IEA warned in a report. Related Israel kills IRGC intelligence chief and deputy, Iranian state media says Netanyahu says Israel has not ruled out killing Iran's Ayatollah Ali Khamenei Iran seeks international mediation amid conflict with Israel, Trump promises peace Era of nuclear disarmament 'coming to an end', SIPRI warns LNG markets are even more exposed to potential disruptions. All LNG exports from Qatar—the world's second-largest LNG exporter—and the UAE must pass through the Strait. The IEA reports that 90 billion cubic metres (bcm) of LNG transited the Strait in the first ten months of 2023, equal to 20% of global LNG trade. With no viable alternative routes for LNG exports from Qatar or the UAE, any maritime closure would severely tighten global supply. Around 80% of these LNG volumes are destined for Asia, while Europe receives roughly 20%, meaning disruptions would exacerbate competition between regions, especially in a tight market. 'The sheer volume of oil passing through the Strait and the scarcity of alternative routes means even brief disruptions would have significant consequences for the global market,' the IEA stated. While a full closure remains a low-probability scenario, analysts agree that the threat alone is enough to inject volatility into energy markets. Crude oil prices surged by 13% last week amid escalating tensions between Israel and Iran. Although prices have since eased slightly after reports confirmed that Iranian energy infrastructure remained untouched by Israeli strikes, the risk of further escalation—and potential disruption to global energy flows—remains elevated. In response, Wall Street analysts have been quick to assess the possible fallout from any interruption of oil and gas shipments through the Persian Gulf, particularly the Strait of Hormuz. Goldman Sachs warned that an extreme risk scenario involving a prolonged closure of the Strait could push prices well above $100 per barrel. The investment bank estimates that Iran currently produces around 3.6 million barrels per day (mb/d) of crude oil and 0.8 mb/d of condensates, with total seaborne exports averaging 2.1 mb/d so far this year—most of it heading to China. T ING's head of commodities strategy, Warren Patterson, indicates that the market has begun pricing in a substantially higher geopolitical risk premium in light of recent developments. Patterson stated that any disruption to Iranian oil flows would be enough to eliminate the expected oil surplus for the fourth quarter of 2025, likely pushing Brent crude prices toward $80 per barrel. Yet, the analyst warns that a more severe scenario—such as a disruption of shipping through the Strait of Hormuz—could be far more consequential. 'Almost a third of global seaborne oil passes through this chokepoint,' he noted. 'A significant disruption to these flows could drive prices up to $120 per barrel, particularly because most of OPEC's spare capacity is located in the Persian Gulf and would be inaccessible under such conditions.' "This escalation also has ramifications for the European gas market," he added. The Strait of Hormuz is more than just a shipping lane—it's a lifeline for global energy. With no easy detours for oil or LNG flows, its vulnerability puts markets on edge every time tensions flare in this region. A full closure of the Strait may still seem a remote event, but the mere threat is enough to rattle markets and keep oil prices elevated. As Iranian and Israeli forces continue to exchange strikes, the risk of miscalculation looms large. In a region where diplomacy is fragile and stakes are high, one wrong move could turn a regional conflict into a global energy crisis. 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Time of India
an hour ago
- General
- Time of India
Rispana-Bindal road projects: Concerns grow over environmental impact, lack of rehab plan
Dehradun: Concerns over the Rs 6,500 crore Rispana-Bindal elevated road project, which is touted as a 'solution to Doon's traffic woes' have intensified with several stakeholders, including residents, activists, and thousands of slum dwellers who may be displaced, expressing apprehension regarding the proposed 26-km elevated corridor, planned over the Rispana and Bindal riverbeds, aims to ease city traffic and offer a quicker route to Mussoorie. But activists claim it may cause irreversible ecological damage and permanently alter Dehradun's skyline. On Tuesday, the Dehradun Citizens Forum hosted a Town Hall Meet on the project at The Doon Library & Research Centre. The session featured a presentation by PWD engineer Jitendra Tripathi and consultancy firm Spectrum. Attended by over 100 professionals from diverse fields, the event saw strong calls for the immediate public release of the Environment Impact Assessment (EIA) and an inclusive cost-benefit analysis. Participants also urged that river rejuvenation efforts proceed independently of the corridor project. Officials said detailed project reports (DPRs) have been prepared and submitted to the state govt for approval. The criticism about the project centres on two fronts -- environmentalists fear the project will severely impact the Doon valley's ecology, while social activists warn of the large-scale displacement of residents once construction begins. The project also contradicts previous claims by the state govt to rejuvenate the rivers. Activists fear that such a large-scale infrastructure undertaking will leave no scope for restoration and could mark the end of these rivers. They are demanding transparency, environmental safeguards, and clear rehabilitation policies before work starts on the elevated road network. "There is both curiosity and concern among residents across Dehradun about the elevated roads being built over the fragile riverbeds of Rispana and Bindal," said social activist Anoop Nautiyal. "With pillars up to 15 metres high, this corridor risks permanently changing the city's ecological fabric. We're demanding that the Environmental Impact Assessment report be made public so that citizens can engage meaningfully and assess the true costs." Activists also called for public involvement in planning major infrastructure projects, especially those that claim to serve public interest. "There is often a stark contrast between govt claims and ground realities," said Manoj Dewaria, a resident of Kanwali Road. "They say it's to ease traffic, but what about the thousands of families whose future now hangs in the balance? There's been no talk of compensation or rehabilitation. What kind of public policy is this?" With project details still unclear, activists have filed several RTIs, but responses have been vague. One such reply from the PWD, accessed by TOI, stated: "In light of increasing traffic pressure in Dehradun and unavailability of space for road widening, the construction of the Rispana-Bindal elevated corridor is proposed. This will provide relief from traffic congestion in Dehradun. The project is under process and until its completion, specific details cannot be provided. "
Time of India
10 hours ago
- Business
- Time of India
Oil prices stable as Strait of Hormuz remains open; global surplus of 0.9 mbpd, OPEC spare capacity at 4 mbpd supports supply
New Delhi: Global crude oil prices have remained steady despite heightened tensions in the Gulf region, with the Strait of Hormuz —responsible for nearly 20 per cent of global oil shipments—remaining operational. According to a report by YES Securities, oil markets are currently supported by a projected surplus of 0.9 million barrels per day (mbpd) and a 4 mbpd spare production capacity held by OPEC . The report noted that Iran, which exports 1.5 mbpd of crude oil, has historically avoided actions that would jeopardise its own oil shipments or those of regional allies such as Iraq and Qatar. The ongoing Iran-Israel conflict has not led to a blockade of the Strait of Hormuz , preventing any immediate impact on oil flows through the critical passage. OPEC's spare production capacity of 4 mbpd remains significantly higher than Iran's current export volume, providing a supply buffer to absorb shocks. Additionally, US shale production continues to contribute to global supply resilience, despite declining rig counts. US shale output has increased even as rig activity has reduced, and net US oil imports have declined consistently over the past decade. This shift has enabled global oil markets to withstand regional tensions that would previously have triggered sharp price spikes. Demand-side projections have also moderated. Both the International Energy Agency (IEA) and the US Energy Information Administration (EIA) have revised their 2025 global oil demand growth forecasts. IEA now expects demand to increase by 0.72 mbpd and EIA projects 0.8 mbpd growth, down from earlier estimates of 1 mbpd. Factors influencing this revision include China's slower post-COVID recovery, growing electric vehicle adoption, and fuel efficiency improvements. On the export front, Iranian oil shipments—primarily routed to China—are continuing without major disruption. The report noted that unless there is a full blockade of the Strait of Hormuz or physical damage to Gulf energy infrastructure, Brent crude prices are unlikely to remain above USD 80 per barrel on a sustained basis. The report concluded that while the geopolitical environment remains tense, current supply dynamics, including OPEC capacity and US shale resilience, are expected to keep oil prices relatively stable in the near term.
Time of India
11 hours ago
- Business
- Time of India
Oil prices stable as Strait of Hormuz remains open; global surplus of 0.9 mbpd, OPEC spare capacity at 4 mbpd supports supply
New Delhi: Global crude oil prices have remained steady despite heightened tensions in the Gulf region, with the Strait of Hormuz —responsible for nearly 20 per cent of global oil shipments—remaining operational. According to a report by YES Securities, oil markets are currently supported by a projected surplus of 0.9 million barrels per day (mbpd) and a 4 mbpd spare production capacity held by OPEC . The report noted that Iran, which exports 1.5 mbpd of crude oil, has historically avoided actions that would jeopardise its own oil shipments or those of regional allies such as Iraq and Qatar. The ongoing Iran-Israel conflict has not led to a blockade of the Strait of Hormuz , preventing any immediate impact on oil flows through the critical passage. OPEC's spare production capacity of 4 mbpd remains significantly higher than Iran's current export volume, providing a supply buffer to absorb shocks. Additionally, US shale production continues to contribute to global supply resilience, despite declining rig counts. US shale output has increased even as rig activity has reduced, and net US oil imports have declined consistently over the past decade. This shift has enabled global oil markets to withstand regional tensions that would previously have triggered sharp price spikes. Demand-side projections have also moderated. Both the International Energy Agency (IEA) and the US Energy Information Administration (EIA) have revised their 2025 global oil demand growth forecasts. IEA now expects demand to increase by 0.72 mbpd and EIA projects 0.8 mbpd growth, down from earlier estimates of 1 mbpd. Factors influencing this revision include China's slower post-COVID recovery, growing electric vehicle adoption, and fuel efficiency improvements. On the export front, Iranian oil shipments—primarily routed to China—are continuing without major disruption. The report noted that unless there is a full blockade of the Strait of Hormuz or physical damage to Gulf energy infrastructure, Brent crude prices are unlikely to remain above USD 80 per barrel on a sustained basis. The report concluded that while the geopolitical environment remains tense, current supply dynamics, including OPEC capacity and US shale resilience, are expected to keep oil prices relatively stable in the near term.
Time Business News
14 hours ago
- Business
- Time Business News
How ISO 14001 Certification Supports Qatar's Industries
Environmental regulations in Qatar are becoming more stringent as the country advances toward its National Vision 2030. For industries operating in high-impact sectors—such as oil and gas, construction, and manufacturing—compliance with environmental laws is no longer optional. ISO 14001:2015 Certification offers a globally recognized framework that helps businesses in Qatar not only meet but exceed environmental regulatory requirements. Qatar's Ministry of Environment and Climate Change (MOECC) oversees environmental protection and sustainability. Industries in zones like Doha, Ras Laffan, Dukhan, and Mesaieed must comply with regulations covering: Waste management Air and water emissions Hazardous material handling Environmental Impact Assessments (EIA) Regular environmental audits Non-compliance can lead to heavy fines, suspension of operations, and long-term reputational damage. ISO 14001:2015 is the international standard for Environmental Management Systems (EMS). It provides a systematic approach for managing environmental responsibilities in a way that contributes to sustainability. Here's how it supports compliance in Qatar: ISO 14001 requires organizations to identify all applicable environmental legislation and regulations. This includes local laws from MOECC and international environmental agreements that Qatar adheres to. The certification process helps set up documented procedures to control operations that may impact the environment—such as emissions control in Ras Laffan or waste treatment in Mesaieed. Industries are required to monitor environmental performance and measure outcomes, ensuring ongoing compliance with both ISO and national laws. Regular audits allow early identification of potential non-conformities, giving industries the opportunity to resolve issues before regulatory inspections. Implementing ISO 14001 goes beyond compliance. Industries in Qatar gain multiple strategic advantages: Risk Reduction : Identify and mitigate environmental risks before they escalate. : Identify and mitigate environmental risks before they escalate. Regulatory Trust : Certified companies enjoy greater credibility with local authorities. : Certified companies enjoy greater credibility with local authorities. Operational Efficiency : Waste reduction and energy optimization lead to cost savings. : Waste reduction and energy optimization lead to cost savings. Market Access : Certification is often a prerequisite for global partnerships and tenders. : Certification is often a prerequisite for global partnerships and tenders. Employee Awareness: Encourages a culture of environmental responsibility among staff. In areas like Dukhan and Ras Laffan, where oil and gas operations dominate, ISO 14001 has enabled companies to align their operations with environmental expectations. These firms have reported fewer compliance violations and smoother environmental assessments, securing long-term operational licenses. For industries in Qatar, especially those in regulated industrial zones, ISO 14001 Certification is not just an environmental badge—it is a strategic compliance tool. It bridges the gap between legal requirements and sustainable operations, supporting both business continuity and environmental stewardship. Get ISO 14001 certification from Qdot – and ensure your organization is legally compliant, environmentally responsible, and globally competitive. TIME BUSINESS NEWS
