Israel and Iran in conflict. Oil prices react immediately
Oil prices are rising again. The growing conflict of Israel with Iran increases the risk of interference from the Middle East.
An upward trend is maintained on the oil market. Raw raw material quotations continue the increase from previous sessions, and analysts currently see no reasons for a quick price drop. The key factor affecting the situation is the escalation of the conflict between Israel and Iran, which raises serious concerns about the security of deliveries from the Middle East.
High prices
On Monday morning, the price of West Texas Intermediate (WTI) oil barrel with delivery for July amounted to $ 73.91, which means an increase of 1.27 percent. In turn, Brent oil barrel from August contracts at ICE was valued at $ 74.98, which was an increase of 1.01 percent.
The geopolitical situation in the region has significantly affected the mood of investors. On Friday morning, Israel carried out massive attacks on goals in Iran, indicating that their goal was military facilities and nuclear program. Prime Minister Benjamin Netanyahu said that Iran already has the amount of enriched uranium sufficient for the production of nine nuclear bombs.
In response, Iran recognized Israeli actions as a “declaration of war” and conducted rocket attacks for purposes in Israel. As a result of Iranian raids, they were damaged, among others Haifa oil transmission installations. In turn, Israel conducted attacks on fuel magazines in Tehran and gas deposits in the Persian Gulf, causing an explosion at the gas processing plant associated with the South Pars field.
Conflict in the Middle East
Experts warn that the ongoing exchange of blows between two countries can lead to further damage to energy infrastructure. The Energy Aspects Ltd. analyst, Richard Jonathan Bronze, described the last Israeli actions as a significant impact and pointed out that it is not excluded to expand operations to subsequent energy facilities of Iran.
World leaders are calling for de -escalation and return of Iran to negotiate on his nuclear program. Meanwhile, markets are getting ready for further turbulence – the Middle East is responsible for about a third of global oil production, and any conflict in the region can seriously affect its availability and prices.
