“The White House has probably sought to dissuade Prime Minister Netanyahu from a Kharg Island strike, given that it could remove 90% of Iranian oil exports,” they said, referring to the Israeli leader. “However, the longer this conflict continues, the odds increase that Israel could seek to curtail the funds that Iran would need to reconstitute its nuclear program.”
Oil supplies from the Middle East face increasing risk as the conflict between Israel and Iran drags on, according to RBC Capital Markets, which warned that energy is now “clearly in the crosshairs.”
“The fact that both sides targeted energy infrastructure on the second day of fighting represents a clear cause for concern,” analysts including Helima Croft said in a note, citing attacks that included gas facilities. Among possible scenarios, Israel may opt to strike Tehran’s Kharg Island hub to curb crude flows, while Iranian proxies may hit facilities in Iraq, they said.
