Conflicting Sides in the Gulf

There are two main sides in the conflict that has been consuming the Gulf and other parts of the Middle East for five months now; On one side there is Iran and its Islamic Major Guards Corps (IRGC). Allied to them are the Houthis in Yemen, a tribal group who took over much of the country in 2014. Also backed by Iran are the Popular Mobilisation Forces in Iraq, the paramilitary group that has allegedly carried out 30 drone strikes on Saudi Arabia and has now been attacked in return, according to BBC.

On the opposite side of this conflict is the US with its immensely powerful Central Command (Centcom) forces plus – to varying degrees – the Gulf Arab states and Jordan. Israel remains a close US ally but is currently not an active participant in this war. Iran has most recently been concentrating its drone and missile attacks on Jordan, Kuwait and Bahrain, as well as targeting any commercial shipping that tries to slip through the Strait of Hormuz while avoiding Iran’s new rules and routing, according to BBC.

Escalating Impact on Global Energy Markets

The price of oil surged higher and showed no signs of halting its rapid climb a week after the U.S. and Israel launched major attacks on Iran that escalated into a war in the Middle East, according to ABC7 Los Angeles. The conflict has left ships that carry roughly 20 million barrels of oil a day stranded in the Persian Gulf, unable to safely pass through the Strait of Hormuz, the narrow mouth of the Gulf that is bordered on its north side by Iran.

The shipping disruption and damage to key Middle East oil and gas facilities has interrupted supplies from some of the world’s largest oil producers. Kuwait, for example, said on Saturday that it would reduce its oil production as a “precautionary” measure due to the war, which could jolt global energy markets even further. Oil prices surpassed $90 a barrel Friday, with American crude settling at $90.90, up 36% from a week ago, and Brent, the international standard, climbing 27% over the course of the week to land at $92.69, according to ABC7 Los Angeles.

Consumer and Business Impact

“It’s crazy. The fallout is ratcheting up what consumers and business will pay for gasoline, diesel and jet fuel, with some drivers already feeling it at the pump. It’s not needed. Especially at a time when people are already struggling, but not unexpected from all this turmoil that’s going on,” said Mark Doran, who was pumping gas in Middlebury, Vermont Friday. “I don’t think there’s been an end in sight to any Middle East conflict that’s been started by us, so the fact that they say that there’s going to be an end that quickly is not believable. The Middle East is. You know. A place that the U.S. is not going to solve,” according to ABC7 Los Angeles.