00:00As Iran weighs its response to US attacks on its nuclear sites, oil markets are entering a new phase of uncertainty.
00:08A member of the Organization of the Petroleum Exporting Countries, Iran currently produces around 3.3 million barrels per day.
00:16However, recent Israeli strikes have targeted a refinery and fuel depot, according to Tehran.
00:22Well, Iran's 3% of the global oil supply, so that's a concern. But OPEC has said they will release supply, so I think short-term it'll be OK in respect to oil.
00:35The big thing is if there's some sort of blockade for the Straits of Hormuz.
00:40Iran has threatened to close the Strait of Hormuz, a narrow waterway through which roughly 20% of the world's crude supply flows.
00:47This could severely disrupt transit, leading to higher insurance rates and making shippers nervous to move without US Navy escorts.
00:56However, such a move would be difficult to pull off, given the width of the strait and the fact that a large part of it is in Oman.
01:03On top of this, Iran uses the waterway to transport its own crude, mostly to China, a major revenue source for the regime.
01:10That's the argument US Secretary of State Marco Rubio used when he spoke to Fox News on Sunday, saying,
01:18I would encourage the Chinese government in Beijing to call Iran about that because they heavily depend on the Strait of Hormuz for their oil.
01:25If they do that, it will be another terrible mistake. It's economic suicide.
01:30It's not the first time Tehran has threatened to close the Strait of Hormuz.
01:34Nevertheless, the uncertainty has led some experts to warn of increasing oil prices, even hitting $100 a barrel should exports through the waterway be affected.
