Iran has maintained its usual oil exports to China even amid Operation Roaring Lion and Operation Epic Fury, maintaining a steady cash flow that finances the Islamic Republic, businessman Eran Efrat told Erel Segal on 103FM on Sunday.
"The Iranians are managing to bring in money almost as usual," he said, arguing that the actual rise in energy markets is due to speculations on the futures market and not to an actual oil chain supply crisis.
"There is no shortage of oil and gas in the world," he explained and added, "The prices we see today are largely the result of speculation in the futures markets, and the real impact will only be felt later."
Currently, the price of oil is floating in the $100 line, with the West Texas Intermediate (WTI) barrels trading at $99 while the Brent Crude barrels are at $104.
Kharg Island operation didn't affect Iran
According to Efrat, another proof of the price being mostly speculation lies in the operation on Kharg Island, where 90% of the Iranian oil exports are processed and shipped.
According to his analysis, the attack didn't managed to damage the island extensively. "This is an area with a lot of infrastructure and pipelines, so it is difficult to damage it in a way that would completely prevent export activity," he said.
He also explained that, the future of the operations might developed in two different ways: An American operation to guarantee the circulation of oil through the Strait of Hormuz, or a ground offensive to ocuppy Kharg Island in order to build more preassure against Iran.
"Kharj Island is only about 25 kilometers off the Iranian coast and is not particularly large. Even a naval threat from a single warship could affect the movement of oil tankers to the area," he added, noting that an invasion would not require a complex operation.