World

Saudi Arabia, and the law of the sea, keeping the world’s oil moving

Energy traders have long had a recurring nightmare. It starts with a narrow strait between Iran and Oman, through which about a fifth of the world’s oil normally passes, and ends with tankers anchored, insurers raising their rates and the price of a barrel heading north. This year, the nightmare came true. The Strait of Hormuz is largely closed, Brent is above $110 a barrel and the old question has changed. It is no longer whether Gulf oil will be disrupted but how much of it can still get out.