U.S. Diplomacy Keeps Oil Prices Stable Amid Mideast Tensions, But Loss of Influence Could Spike Costs
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Oil prices have remained low despite Israel-Hamas war due to U.S. diplomatic efforts and influence over China.
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Recent Houthi seizures of ships could cause the oil risk premium to rise dramatically.
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China plays a critical role, with ability to use influence in region to prevent escalation.
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If U.S. loses influence over China, Iran could widen the conflict, spiking oil and gas prices massively.
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Iran has already called for Islamic OPEC states to embargo oil exports to Israel, which could severely impact global oil supplies.