Are petrol prices in Ireland about to spike due to the conflict in the Middle East?

As the conflict in the Middle East continues to escalate following the US joining Israel in attacking Iran over the weekend, the world has been bracing itself for how this will impact the international economy. More specifically to Irish consumers, how will it affect drivers at the petrol pump?

Iran is an incredibly important actor when it comes to oil production and that is why there is a lot of concern over the economic repercussion to this conflict. Iran is OPEC's third-largest crude oil producer, however, what is causing the greatest amount of anxiety is the Strait of Hormuz.

With the US' strikes on Iran over the weekend, many have speculated that Iran could retaliate by closing the Strait of Hormuz which would have a detrimental impact on oil prices across the world and here in Ireland. 

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The Strait of Hormuz is the world's busiest oil shipping channel as around 20% of the global oil and gas supply flows through here. If Iran were to block the Strait, the price of oil would sky rocket and international trade would be significantly disrupted. 

All of the major oil producers in the region use this channel to transport oil and so any disruptions here would have a knock-on effect for consumers across the world.

As Ireland imports all of its crude oil, that means we are reliant on other countries for our petrol and diesel. So, what happens thousands of miles away matters when it comes to fuelling up our cars.

Already oil prices have jumped significantly following the US' strikes in recent days and experts expect more price hikes can be anticipated as the conflict continues.

Although Iran has threatened to close the Strait of Hormuz in retaliation for the attacks, they would suffer serious economic consequences if they did. For now, there is a lot of uncertainty as to what exactly will happen next.