10. March 2026

Dr. Frank Umbach spoke about rising oil prices in an interview with Deutschlandfunk radio Dr. Frank Umbach spoke about rising oil prices in an interview with Deutschlandfunk radio

Dr. Frank Umbach was a guest on Deutschlandfunk radio on March 10 to discuss the impact of the closure of the Strait of Hormuz on oil prices. He said that there was no sign of the situation easing in the near future.

The war in Iran is reducing the global supply of oil and gas.
The war in Iran is reducing the global supply of oil and gas. © Pixabay
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As a result of the attack by the US and Israel, Iran has largely closed the Strait of Hormuz. Cargo ships and tankers are congesting the strait, catapulting oil and gas prices to new heights. Only a few Chinese ships have been able to pass through the Strait of Hormuz so far.

According to Dr. Frank Umbach's assessment, the attack on Iran was driven by the hope of success, as had previously been sought in Venezuela. However, this expectation of rapid change in Iran has not been confirmed. The US government's current considerations to suspend or weaken sanctions on Russian oil would primarily play into Putin's hands: The increased revenue from oil sales could provide massive support to the Russian budget, which has recently been in distress.

Another possibility for a temporary reduction in oil prices would be the release of strategic reserves by the G7 countries. However, this measure would be limited in time due to limited supplies and would be ineffective in the event of a prolonged war in the region. According to Dr. Frank Umbach, careful consideration must therefore be given to when and whether to use this instrument. The large number of ship-launched missiles in Iran's possession is also proving particularly problematic. Even if the attacks by the US and Israel were to end, Iran would remain in a position to pose a permanent threat to international shipping.

You can listen to the entire Interview with Dr. Frank Umbach here.

Dr. Frank Umbach is Head of Research at the European Cluster for Climate, Energy, and Resource Security (EUCERS) at the Center for Advanced Security, Strategic and Integration Studies (CASSIS).

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