How Does the Attack on Israel by Iran Affect Crude Oil Prices?

How Does the Attack on Israel by Iran Affect Crude Oil Prices

● Geopolitical strife in the Middle East caused a 1% hike in oil rates on Friday, as worries about possible supply interruptions mounted. Brent crude concluded at ₹6,591 per barrel, with U.S. West Texas Intermediate crude climbing to ₹6,264, despite experiencing a weekly decline due to a pessimistic outlook on global oil demand growth from the International Energy Agency (IEA) and concerns regarding reduced U.S. interest rate reductions.

● The U.S. anticipates a potential Iranian attack on Israel, but Iranian sources suggest they aim to prevent a significant escalation. Nonetheless, there are worries about supply chain disruptions, with Iran still threatening to block the Suez Canal, as stated by Tim Snyder, an economist at Matador Economics
● The conflict’s impact on the global oil markets is substantial, as any potential supply disruptions could result in price increases.

● The ongoing Gaza war, part of the broader Israel-Hamas conflict, has already influenced oil prices to some extent. Despite the conflict’s severity, Brent crude prices have remained steady at approximately ₹5,800 per barrel, with analysts observing minimal disturbance in petroleum prices thus far.
● However, the looming possibility of an Iranian attack on Israel has intensified pressure, with crude oil prices nearing six-month highs.