Oil market observers are closely monitoring the escalation of conflicts in the Middle East, particularly after Iran launched ballistic missiles at Israel. This development poses a significant threat to global oil supplies.
Analysts warn that as Israel considers retaliatory measures, Iran’s oil infrastructure could become a primary target. Bob McNally, President of Rapidan Energy Group, noted that the conflict is entering a new energy-related phase as Israel shifts focus to Lebanon and Iran.
Saul Kavonic, Senior Energy Analyst at MST Marquee, indicated that the Middle East conflict could imminently impact oil supplies, with a high likelihood of major disruptions. Trade sentiment has been fatigued by geopolitical risks from regions like the Middle East and Ukraine. However, the recent developments might serve as a critical turning point.
Kavonic emphasized that with the conflict now directly affecting Iran, 4% of the global oil supply is at risk. Any attacks or stricter sanctions could trigger oil prices to soar back to $100 per barrel. Josh Young, CIO of Bison Interests, also highlighted the potential for significant disruptions in oil supply should Iran's exports be interrupted, predicting a sharp rise in oil prices above $100 per barrel.
Brent crude oil prices were reported at $74.53 per barrel recently.
