Iran-Israel conflict could have significant impact on oil prices - Photo: MARKETWATCH
Geopolitical tensions in the Middle East sent oil prices up 1% in the final trading session of the week, April 12, due to concerns about the possibility of supply disruptions.
Brent crude oil is at $90.45/barrel, WTI crude oil increased to $85.66/barrel.
On April 12, the market’s concern was whether Iran would retaliate against Israel, in connection with the suspected Israeli aircraft attack on the Iranian Embassy in Damascus. And by the end of April 13 (local time), Iran attacked Israel with a series of missiles and drones.
According to Reuters, the impact of the Iran-Israel conflict on the global oil market is huge, as any risk of supply disruption could lead to price increases.
Previously, the ongoing war in the Gaza Strip between Israel and Hamas also affected oil prices, although not significantly. Despite the intensity of the conflict in Gaza, Brent crude oil prices remained stable at around $80/barrel.
However, Iran’s attack on Israel would add to the pressure, sending crude prices close to six-month highs. As tensions have escalated in the Middle East in recent weeks, benchmark U.S. crude futures have risen more than 5% and global benchmark Brent crude has risen nearly 6%.
Analysts predict that if Iran's attack leads to a wider war, the risk premium will increase by $5-10 per barrel, potentially pushing prices above $100 per barrel.
"Iran's secret weapon is its ability to block the Strait of Hormuz," said Manish Raj, chief executive of energy market investment firm Velandera Energy Partners.
The Strait of Hormuz - the sea route between the Persian Gulf and the Gulf of Oman - is the world's most important oil transit point. In the first half of 2023, oil flows through the strait averaged 21 million barrels per day, accounting for 21% of global liquid petroleum consumption.
Mr. Rob Thummel, CEO of energy investment company Tortoise, predicts that the global oil market will be in short supply in the second and third quarters of this year.
India, as one of the largest oil consumers and importers, is particularly vulnerable to such developments.
While the initial impact of the conflict on India's trade with Israel is minimal, the escalation could jeopardize India's oil supplies as the country is heavily dependent on imports from the Middle East.
The Indian government has increased crude oil imports from Russia, accounting for more than 35% of crude oil imports by 2023, to minimize the impact of the Russia-Ukraine war on oil supplies./.
According to Tuoi Tre
Source: https://tuoitre.vn/gia-dau-co-the-tang-len-100-usd-thung-sau-khi-iran-tan-cong-israel-20240414093552659.htm
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