Iran’s Revolutionary Guards have warned a “new stage of war” has begun after Israel bombed Iran’s South Pars gas field — the largest known natural gas reserve in the world. This comes as the price of oil has spiked to $118 a barrel, a 60% jump since the U.S. and Iran attacked Iran on February 28.
Professor of Gulf studies Laleh Khalili lays out the global economic implications of the effective closing of one of the world’s “major choke points for oil,” the Strait of Hormuz. “It doesn’t benefit the average U.S. citizen … at the gas stations, but it does benefit the oil companies,” says Khalili. “The higher the price of oil goes up, the relatively cheaper it becomes to actually have sustainable alternatives. Of course, that means that it benefits China … since China is way ahead of the rest of the world in producing these technologies.”
