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Iran-Israel conflict boosts oil prices
The Iran-Israel standoff is gaining momentum, and the oil market is taking a hit. According to CNBC analysts, Israel might strike Iran's oil facilities.
The threat to oil supplies became serious after Iran launched ballistic missiles at Israel. It is likely that Israel will not take this lying down and could respond by targeting Iran's oil infrastructure. In such a scenario, the entire global oil market would be at risk. Saul Kavonic, senior energy analyst at MST Marquee, says supply disruptions are inevitable in this situation. “Up to 4% of global oil supply is at risk as the conflict now directly envelopes Iran, and an attack or tighter sanctions could send prices to $100 per barrel again,” he added.
The analyst also mentioned that an Israeli attack on Iran or stricter sanctions could push oil prices up to $100 per barrel. Bloomberg, citing ClearView Energy Partners, reports that the Brent benchmark price could rise by $7 per barrel if the US and its allies impose new sanctions on Iran, or by $13 if Israel strikes Iran's energy infrastructure. Once the Iran-Israel conflict affects tanker traffic through the Strait of Hormuz, oil prices will jump by $13–$28 per barrel. Analysts say that Brent prices rose by more than 5% following Iran’s missile strike.
Recently, Iranian authorities announced their readiness for possible Israeli retaliation. Against this backdrop, experts suggest that Israel's military could target Iranian oil fields and other key strategic sites, including nuclear facilities.
Published 08 October 2024
© InstaFintech Group
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© InstaFintech Group
