Expect the Iran war to disrupt oil flows through year-end, says Energy Aspects' Amrita Sen

• Oil price floors are rising, with Brent crude consistently above $100/barrel, despite recent pullbacks.
• Diesel prices, not crude, are the key driver of current market dynamics and remain at record highs.
• Houthi attacks have disrupted Saudi Arabia's East-West pipeline, forcing oil exports to be rerouted via tankers through Hormuz, leading to shipping tightness.
• Iran is leveraging the tight global energy market and ongoing disruptions, showing no signs of backing down, which is expected to continue disrupting oil flows through year-end.

Amrita Sen of Energy Aspects discusses the current state of energy markets, noting that despite recent pullbacks, the floor for oil prices is rising. She highlights that diesel prices are the primary driver of market dynamics, remaining at record highs. Ongoing geopolitical conflicts, particularly Houthi attacks on Saudi Arabian infrastructure, have forced Saudi Arabia to reroute oil exports via tankers through Hormuz, creating shipping tightness and contributing to sustained high energy prices and inflation.