The low-grade oil has been used to fuel power plants amid Iran’s international isolation. Tanks of mazut may now be burning near the city.
In the lead-up to the U.S.-Israeli attack, President Trump downplayed the risks to the energy markets as a short-term concern that should not overshadow the mission to decapitate the Iranian regime.
Iranians cowered under the barrage as Pete Hegseth, the U.S. defense secretary, said the U.S. aimed to wipe out Iran’s capacity to obtain nuclear weapons “forever.”
Now 11 days into an expanding military campaign, President Trump and his officials have given conflicting indications on how long the United States intends the war to last.
Investors now expect that the Fed will delay a rate cut until September instead of July, as they had before the war in Iran began.
The volatility in energy markets because of the war in Iran could not come at a better time for President Vladimir V. Putin.
The Gulf conflict has led to higher fuel prices, and the cost of operating a plane has sharply increased. For travelers, that likely means higher fares.
The price of jet fuel and diesel has surged since the war in Iran began, which could force airlines and trucking companies to pass on higher costs to their customers.
Pakistan, Iran’s neighbor, has been striving to remain neutral in the conflict. But its government and military have been forced to act to protect its economy.
The president said the U.S. could accompany tankers through the Strait of Hormuz if necessary to keep oil flowing. “We’ve already won in many ways, but we haven’t won enough,” he said.