The World's Largest Oil Producers
After an initial surge in oil prices following the U.S. attacks on Iranian nuclear sites on the weekend, the price of Brent crude oil futures moderated through Monday, trading around $77 per barrel as the world anxiously awaits Iran’s response to the strategic attacks. With the U.S. now directly involved in the Israel-Iran conflict, fears of Tehran disrupting the global oil supply in retaliation have intensified.
Due to its large reserves and strategic geographic position, Iran plays a significant role in the global oil market, giving the country a valuable bargaining chip in international negotiations. According to the U.S. Energy Information Administration, Iran produced roughly 4,700 million barrels of crude oil and natural gas liquids per day in 2024, making it the world’s sixth largest oil producer. Perhaps more important than Iran’s role as an oil producer is its strategic position and control of the Strait of Hormuz, though. Blocking off the narrow waterway, through which roughly 20 percent of the world’s crude oil supply flows, could disrupt the global oil market significantly.
According to Iranian state media, the country's parliament has already called for a closure of the strait. The gradual easing of Brent prices on Monday indicates that traders don't fear an imminent disruption of oil flows, however.