The EU has joined forces with the US in banning imports of Iranian oil in response to Iran’s continuing nuclear development programme. In December, the United States imposed huge financial sanctions on Iran, with huge entities being imposed on any US entity that has dealings with the Iranian central bank.

The EU embargo on new contracts for crude oil and petroleum products will commence immediately. In response politicians in Iran have threatened to block the Strait of Hormuz, cutting off a gateway for the Arab states crude oil exports, causing chaos in supply chains globally.

After China the EU is Iran’s largest importer…

The last few days have seen a worrying escalation in tension and military activity between Iran and the US over Iran’s nuclear testing programme and the US and Europe’s subsequent plans to block Iran’s oil exports.

Iran’s reaction to US and European sanctions is worrying gulf shipping hubs as Iran has threatened to close the Strait of Hormuz in retaliation against these sanctions. The Strait of Hormuz links the Gulf to the Indian Ocean and is the gateway for ships entering Dubai, which houses the world’s ninth largest port. Dubai is an extremely significant shipping port as it supplies central Asian,…

US diesel prices are at their lowest level since the week ended October 10^th, 2011. This is the fact that oil prices have hit a seven month high as a result of tensions over the Strait of Hormuz, which we reported on this morning.

The Rocky mountain region saw the largest reduction in diesel prices, by 2.5%, to reach a level of $3.83 per gallon. The next largest weekly reduction was the Midwest region which was 2.3%, to a level of $3.68 per gallon. Most other regions nudged up slightly in price when compared to a week ago. This is good news for US road hauliers in that road freight is becoming more cost competitive.

To…

Global supply chains are under threat as US/Euro-Iran tensions reach new levels as Tehran threatens to block the Strait of Hormuz in retaliation against tougher trade sanctions proposed by the EU.

The Strait of Hormuz controls the access point to the region’s largest port, Dubai and the major oil producing countries of Qatar, Saudi Arabia and Kuwait. Oil prices rose by 6% in two days as a result of the escalating tensions. Dubai is of major concern to international shippers of sea freight as it is the worlds  ninth largest port, and needless to say a hugely significant port in regards global oil supply, with Dubai itself producing…