Global oil prices rise after Israel Iran’s attack

Global oil prices jumped after Israel said it had hit Iran in a dramatic escalation of tensions in the Middle East.

The price of Brent raw material has increased by more than 10%, reaching its highest level since January, before losing some profits.

Traders were concerned that a conflict between Iran and Israel could disrupt the supplies coming from the energy -rich region.

The price of raw oil affects everything – from how much it costs to fill your car to the price of food in the supermarket.

After the initial jump, oil prices were slightly relieved. But Brent Crode was still over 5% higher than the closing price on Thursday, trading at about $ 70.60 a barrel.

Despite Friday’s moves, oil prices are still more than 10% lower than where they were at the same time last year. They are also well below the peaks observed in the beginning of 2022 after the invasion of Russia in Ukraine, when the price of the raw rises well over $ 100 a barrel.

Shares prices fell in Asia and Europe on Friday. The Japanese Nikkei stock index ended by 0.9%, while the FTSe 100 Index in the UK closed by 0.39% more.

The US stock markets also closed. The industrial average of Dow Jones fell by 1.79%, while the S&P 500 dropped by 0.69%.

The so -called “Safe Have” assets as Gold and Swiss Franc made profits. Some investors see these assets as more reliable investments in times of uncertainty.

The price of gold reached its highest level in nearly two months, raising by 1.2% to $ 3.423.30 an ounce.

Following Israel’s attack, Israeli defense forces (IDF) said Iran had fired about 100 drones to the country.

Analysts have told the BBC that now the energy traders will monitor how much conflict worsens in the coming days.

“This is an explosive situation, albeit one that can be destroyed quickly, as we saw in April and October last year, when Israel and Iran hit directly,” Vandana Harry at Vanda Insights told the BBC.

“This can also become a greater war that violates the Middle East oil supply,” she added.

Capital Economics analysts have said that if Iranian oil and export production facilities are directed, the price of Brent raw material can jump to about $ 80-100 per barrel.

However, they added that such a pricing jump would encourage other oil producers to increase production, ultimately limiting the increase in prices and the effect of the knockium on inflation.

A spokesman for the United Kingdom motorcycle RAC, Rod Dennis, said it was “too soon” to say what influence would have the slightest increase in oil on gasoline prices.

“There are two key factors in the game: whether the higher wholesale fuel prices are maintained in the coming days and the most important thing is that the type of retailers decide to take,” he said.

In an extreme scenario, Iran could disrupt the supply of millions of barrel oil a day if it is directed to infrastructure or shipping in the Hormuz Strait.

The conductor is one of the most important shipping routes in the world, with around the fifth of world oil.

At any moment, there are several dozen tankers on the way to the Hormuz Strait or leave it as the main producers of oil and gas in the Middle East and their customers transport energy from the region.

Limited north of Iran and south by Oman and the United Arab Emirates (UAE), the Hormuz Strait connects the Persian Gulf to the Arab Sea.

“What we see now is a very initial risk response. But the next day or two markets will have to take into account where it can escalate,” said Saul Kavonik, the head of energy research at MST Financial.

Additional reporting by Katie Silver