Will petrol, oil and diesel prices ever truly go back to ‘normal’?

The effects of the war between the USA, Israel and Iran have dominated global oil markets. And not just because the Strait of Hormuz, which normally carries about 20 percent of global oil and gas, remains closed. effectively shut down to shipping traffic.

Deep uncertainty about how long the outage will last added a permanent “risk premium” — an extra cost added to oil prices to account for the risk of supply disruptions. Rising insurance costs, declining ship traffic and longer transit routes avoiding the Middle East have further increased friction in global oil supply chains.