Brent crude oil drops 12% as tensions rise in Middle East
Brent crude oil just dropped 12% to $87.06 a barrel. The sudden slide comes as worries grow over supply disruptions, with Iraq, Kuwait, and the United Arab Emirates cutting production and global tensions heating up.
The International Energy Agency (IEA) is stepping in with an emergency meeting to figure out how to steady things.
Strait of Hormuz blockade threatens global oil prices
Tensions between Iran and the US have thrown a wrench into oil shipping through the Strait of Hormuz, a route that handles nearly 20% of the world's oil.
With Iran blocking this key channel, the US is considering waiving certain oil-related sanctions and deploying the US Navy to escort tankers, while some tankers are being rerouted to avoid the Strait and Saudi Aramco is routing more crude via its East-West pipeline, which it expects to reach full capacity this week.
Recent attacks on regional oil facilities have only added to market jitters, making everyone wonder what's next for global prices.