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Iranian hostilities could cause spike in global oil prices

Associated Press
Iranian hostilities could cause spike in global oil prices

Seizures of oil tankers and other hostile Iranian measures in the Strait of Hormuz are already raising insurance rates for shipping companies and could eventually reduce tanker traffic in the vital waterway, with a spike in global oil prices a serious risk even without war, energy and maritime experts say. On Friday, Iran seized a British-flagged oil tanker in the narrow passageway that carries one-fifth of the world's crude exports and a second Liberian-flagged ship was briefly detained. The near-term impact will fall most heavily on the shipping industry in the form of higher insurance rates, said Lynch, president of Strategic Energy & Economic Research Inc.