Oil Prices Rise in Global Market After Israeli Attack on Iran
The global oil market saw a sharp rise in prices after news of an Israeli attack on Iran’s capital, Tehran, early Friday morning.
Brent Crude and NYMEX Oil Prices Jump Over 10%
According to BBC, the prices of Brent Crude and NYMEX Light Sweet Crude, two of the most common types of oil in the global market, have increased by more than 10% following the attack.
Experts Fear Supply Disruption from the Middle East
Energy analysts say that the conflict between Iran and Israel could cause serious disruptions in oil supply from the Middle East, a region that plays a vital role in global fuel exports.
If the situation worsens, the impact could be felt around the world.
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Oil Price Hike Affects Everyday Life
Rising oil prices don’t just mean higher costs for car fuel—they also affect grocery prices, transportation, and other daily expenses. This is because fuel is used to produce, package, and transport most consumer goods.
World Watching for Iran’s Response
Analysts told the BBC that all eyes are now on Iran—people are waiting to see whether the country will respond to Israel’s attack.
Vandana Hari, the founder of Vanda Insights, said, “This is an explosive situation.” She added that although Israel and Iran had clashed before in April and October of last year, those situations were quickly brought under control.
However, she warned that this time the situation could grow into a larger war, which might severely affect oil supplies from the Middle East.
Hormuz Strait Could Be Targeted
In a worst-case scenario, Iran could attack oil facilities or block the Strait of Hormuz—one of the world’s most important oil trade routes.
Around one-fifth of the world’s oil passes through the Hormuz Strait. It connects the Persian Gulf with the Arabian Sea, lying between Iran to the north and Oman and the UAE to the south.
This narrow waterway is always filled with oil tankers transporting fuel from major oil-producing countries in the region to other parts of the world.
Experts Advise Caution in Market Reactions
Saul Kavonic, head of energy research at MST Financial, said that the market is currently showing an early reaction based on fear and risk.
He added,
“We need to wait and watch how the situation develops in the next few days before making any strong decisions.”
Source: TBS
