Crude Oil, Refined Products
February 28, 2026
US and Israel strike Iran, raising oil supply security risks
HIGHLIGHTS
Strait of Hormuz in focus, Iran attacks UAE, Bahrain
Iran is a major exporter of crude to China
Israel and the US launched air strikes on Iran during the weekend, starting Feb. 28, raising concerns over the security of oil supplies through the Strait of Hormuz.
Oil prices have risen around $10/b since mid-December amid growing geopolitical concerns in the region. Dated Brent, assessed by Platts, part of S&P Global Energy, closed Feb. 27 at $70.94/b.
Iran has retaliated against targets in Arab Gulf states. Governments in the UAE and Bahrain issued statements Feb. 28 following attacks. The UAE Ministry of Defence said in a statement that it "reserved the right to respond" following the attacks.
The vast majority of Iran’s crude exports flow to China, and any disruptions in the Strait of Hormuz could negatively impact Iran’s own exports -- a key source of revenue. About a fifth of the world's oil flows through the key shipping choke point.
Iran has previously threatened to close the Strait of Hormuz if attacked. The strikes come as OPEC+ is due to meet on March 1 to discuss oil production policy.
