High Oil Prices Rise Due to Tensions Between Iran and Israel

• Oil prices have risen due to the escalation of conflict between Iran and Israel.
• Closure of the Strait of Hormuz could lead to further increases in oil prices.
• Rising energy prices could negatively impact the global economy and inflation.

This is reported by Forbes, Al Jazeera.

Introduction to the Situation

Following recent Israeli attacks on military and nuclear facilities in Iran, oil prices have risen due to fears that violence may continue and spread. This has raised concerns among analysts who predict further increases in oil prices due to market instability.

Impact on the Oil Market

According to reports, Brent crude oil prices rose by 5% compared to the previous day. Oil futures increased by more than 13%, the highest level since January. In the event of the closure of the Strait of Hormuz, through which about 20% of the world's oil production passes, prices could rise even more.

Threat to Global Supplies

Iran has previously threatened to close this key trade artery in response to pressure from the West. Although maritime transport through the Strait of Hormuz continues for now, it is being done with heightened caution, as any military actions could lead to severe supply disruptions.

Strategies of Exporting Countries

Several countries, including the United States, have strategic oil reserves that can be utilized if necessary. It is estimated that these reserves amount to about 1.2 billion barrels. However, historically, governments respond slowly to high prices, using reserves only in cases of physical shortages.

Economic Consequences

The rise in oil prices could have serious consequences for the global economy, especially in the context of already existing inflationary pressures. A JPMorgan Chase study notes that sustained increases in energy prices could undermine the recently achieved positive trends in inflation in the United States.

Conflict Outlook

There are concerns that Iran may take steps to further reduce global oil production, exacerbating the situation. Some analysts believe that Iran may seek to provoke the West without attacking Saudi Arabia or closing the Strait of Hormuz, as this would elicit a direct military response from the U.S.

Теги: Близький Схід/Енергетика