Oil prices rise after Israel's attack on Iran

Oil prices rise after Israel's attack on Iran

The tense conflict between Israel and Iran has global implications, particularly on oil prices. Following a retaliatory strike by Israel against Iran, eyes are turning to the Strait of Hormuz, through which a significant proportion of the world's crude oil is transported. A possible blockage or disruption of shipping traffic in this strait by Iran could trigger a huge crisis.

Experts around the world are speculating about the consequences of Iran closing the Strait of Hormuz following Israel's attack on Isfahan. The transported goods affect 21 percent of global oil and gas trade, with Asia, which sources most of its oil from this region, particularly badly affected. The uncertainty over whether Iran would take this measure comes as the country itself relies on revenue from oil trade.

Despite risks to Iran itself, measures could be taken to close the Strait of Hormuz. Iran could drive up the price of oil by putting pressure on neighboring countries to reduce oil deliveries or stop some ships. A further escalation of the conflict could push oil prices to over $100 a barrel, as experts have discussed.

Experts are calling the potential blockage of the Strait of Hormuz an “economic disaster” because it would have a negative impact on the flow of oil through the Persian Gulf. Despite short-term price increases, analysts believe that a prolonged lockdown is unlikely and therefore a massive economic catastrophe is not imminent. However, there remains a period of uncertainty and tension regarding geopolitical events in the Middle East.