The Hague Island is a small island in the Persian Gulf.
It is 16 miles from Iran’s northwest coast. It is 451 miles from Tehran, the capital of Iran. The distance from Detroit to New York City.
It is only five miles long, about 40% of Manhattan Island in New York. 125 from Iranian border with Iraq.
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It is also unique in the Persian Gulf. The island’s limestone foundation allows for the luxury of freshwater reserves.
Most importantly, it is also an important port that exports Iran’s crude oil. Approximately 90% of Iran’s oil exports pass through the Hague terminal complex. And about a third of their exports go to China.
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If the Israeli-Iran War (Let’s call it for now) goes out of control, the Hague could prove to be one of two important strategic locations.
The other is the Strait of Hormuz, the same width as the 21-mile English Channel and 21 miles wide.
About a third of the world’s liquefied natural gas and 25% of its crude oil must pass through the straits to reach buyers in Europe, Asia and other countries, through the Persian Gulf, 615 miles.
In the strait, a huge oil tanker with oil and natural gas from the flows of Iran, Iraq, Iraq, Saudi Arabia, Arab-Oman, Qatar and Bahrain
Iran is Oman, to the north of the strait and south. For years, whenever there is a conflict involving Iran, he fears that the country will block the straits.
Two important places for the global economy
The importance of the Strait of Kalg and Hormuz will help explain why crude oil prices rose 14% later on Thursday in the first report of Israel’s attacks on Iran’s military and nuclear facilities.
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Ultimately, the benchmark U.S. crude, West Texas intermediates rose 7% to $71.29 on Friday, while Brent, the benchmark global crude, went on to $74.23 for the same amount.
If the worst conflict scenario passes, if Kharg’s terminals and straits are closed, all bets will be crude oil prices and, by extension, natural gas and gasoline prices.
The Hague terminal was blown up during the Iraqiran War from 1980 to 1988.
If Reuters happened again, some analysts had suggested that gross prices could exceed $120 per barrel. This will result in much higher gasoline prices.
The global economy is turmoil and inflation is almost certainly leaping up and down.
AAA’s daily US average gasoline price rose to $3.133 per gallon on Saturday. Prices have so far increased by 3.1% in 2025.
Boosts on the US energy stock
US oil and gas stocks jumped at the news in Israel and Iran on Friday.
The Energy sector of the Standard & Poor’s 500 Index posted profits for the day alone among the 11 sectors of the index.
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Energy Select Sector SPDR Exchange-Traded Fund (xle)) those that match the energy sector of the index increased by 1.7%. Harriburton, the leading oil service company (Hal)) An increase of 5.5%. Apa Corp. (APA)) oil and gas producer Apache’s parents increased by 5.3%.
The S&P 500 fell 1.13%. The Dow Jones industrial average fell by 887 points in the afternoon, finishing at 42,198 with a loss of 700 points (1.8%).
Major stock indices – Dow, S&P 500, Nasdaq Composite, Nasdaq-100, Russell 2000 – all finished low in a week.
More economic analysis:
- Hedge Fund Managers Watch We Become Greece
- Important industries are denounced the economy
- The report may indicate whether the economy is tightening tariffs
Do things get hooked?
That said, many analysts don’t think things will get out of hand.
Similar concerns about the Kharg and Hormuz Straits have produced similar concerns and price forecasts. But in a memo on Friday, Berkeley analyst Amarpreet Singh said “the cool head is winning.”
Furthermore, as Ian Bremer, president of Eurasia Group, a consulting firm that monitors such issues, Iran believes there are few cards to play in the conflict.
Israel’s intelligence reporting capabilities are too capable, he said on the podcast, and Iran’s military capabilities have been significantly reduced by the attack this week.
Still, we need to be careful. Definitely.
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