On Point with Meghna Chakrabarti How big will the Iran war price shock be?
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Mar 12, 2026 Muktada Khan, University of Delaware professor of comparative politics, explains regional leverage and economic knock‑on risks. Mark Finley, Rice energy fellow and former BP economist, breaks down oil market mechanics and supply responses. They discuss Hormuz chokepoint risks, strategic stockpiles, insurance and rerouting costs, and how higher oil prices ripple into transport, agriculture and global markets.
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Strategic Stockpiles Can Help But Have Limits
- The IEA coordinated releases of strategic stockpiles are an emergency lever; 400 million barrels were announced.
- Finley warns spare OPEC capacity can't help much because producers are blocked by the same strait disruption.
Refinery Restarting Is A Slow Technical Process
- Refineries aren't instant to restart after attacks; cold stops require careful cooldown and heatup procedures.
- Mark Finley explains damaged Gulf refineries and complex engineering slow resumption of refined-product flows and raise prices further.
U.S. Strategic Reserve Is Not At Full Capacity
- The U.S. Strategic Petroleum Reserve currently holds ~400 million barrels, not its 700 million capacity.
- Finley notes U.S. SPR releases are separate from larger commercial inventories and U.S. producers can't instantly ramp output.