Investors have revealed that global markets are likely to be disrupted and oil prices will rise due to terrorist attacks by the United States on Iran. On the orders of US President Donald Trump, the US military bombed Iran at 2:30 AM Iran time on June 22. The US B-2 bombers used GBU-57 destructive bombs and Tomahawk missiles to attack three main centers of Iran’s nuclear program. These are centers in Isfahan, Fordo, and Natanz. Trump said the attacks would have destroyed these centers.
The US has attacked Iran in alliance with the Jews. Jewish forces began terrorist attacks on Iran on June 13. Analysts studying the situation believe that the Middle East scene has further heated up due to this crime by the US and Jews, and there is a greater fear that a major war could break out.
Economic and business experts and investors said that with the US crimes, the global oil market will face a major shock and have negative effects. And there is a high chance that oil prices will rise to unprecedented levels. Even before the US joined the Jews in attacking Iran, investors had been warning of its dangerous negative effects. One consequence, investors estimated, would be the fall in share prices of large companies and the start of selling shares.
“Oil prices will rise along with other commodities”
“I believe there will be great concern in the markets, and oil prices will start to rise as soon as markets open,” said Mark Spindel, Chief Investment Officer at Potomac River Capital. “The extent of damage is not estimated, and it will take time to make a full estimate. I believe the biggest concern going forward is not knowing how things will unfold. And with that, [with US attacks] US citizens living in different parts of the world are now exposed [to danger].”
Experts said the biggest concern for the oil market at the moment is not knowing how the deterioration of the Middle East situation will affect oil and commodity prices. If inflation or commodity prices start to rise, spending levels will decrease, they said. “What we can say for certain is that energy prices and commodity prices will face a major shock,” said Jack Ablin, Chief Investment Officer at Cresset Capital.
One measure used to estimate oil prices in the global market is the price of a barrel of Brent crude oil. The price of a barrel of Brent oil has risen by 18% since June 10. On June 19, the price of a barrel of Brent oil rose to $79.04. This is the highest price Brent has risen to in the past five months. Investors also note that there has not been a significant change in Brent prices since the Jews started bombing Iran on June 13.
Experts at Oxford Economics said that with US attacks, there is a possibility of three scenarios. The first is to cool tensions and establish stability. The second is for Iran to suspend oil production. And the third scenario is closing the Strait of Hormuz.
Experts said oil prices would rise in any of these scenarios. And in the most dangerous scenario, they estimate the price of a barrel of oil could rise to $130. If such a situation occurs, Oxford experts also estimate that prices in the US will rise by 6% before the end of this year.
