Oil is trading above $71 a barrel, and markets are watching the Middle East with their hands hovering over the panic button. In this episode of Number of the Day, Gareth Edwards and Francis Herd explain why US–Iran tensions can push oil higher fast, even when there isn’t a clear global shortage.
The key issue is disruption: if shipping routes are threatened, especially around the Strait of Hormuz, the world can feel the squeeze long before any real supply loss shows up in official numbers. The hosts break down how that risk premium forms, why logistics can matter as much as production, and how the oil price links back to South Africa through fuel costs and inflation.
If $71 becomes the new normal, the next question isn’t about geopolitics. It’s about what happens to the price you pay next.
Catch up on all Number of the Day episodes here: https://www.enca.com/number-day-podcast
