The ongoing intense attacks between Israel and Iran have caused oil prices to rise in the global market. Among oil varieties, the price of crude Brent oil has increased by 2.03 percent. As a result, that oil is now available at $74.72 per barrel. Additionally, the price of West Texas Intermediate crude oil has also increased by 1.78 percent to $73.05 per barrel.
So far, there have been no indications of difficulties in oil supply due to the attacks. However, following an Israeli attack on June 14th on the South Pars gas field shared by Iran and Qatar, gas production at that facility has been somewhat slowed down. Israel has also attacked Iran’s Shahram oil facility.
The market’s concern is about potential disruptions to shipping in the Strait of Hormuz, which is the main commercial route for oil supply. However, experts analyzing the situation believe this is unlikely to happen. If that route is closed or its use is hindered, it would also affect Iran’s income. The United States also wants to keep oil prices low and prevent inflation in commodity prices.
In the ongoing attacks between Israel and Iran, so far no major oil or gas facilities have been damaged.
