Emmanuel OchayiAnalysts predict a rise in crude oil prices beyond the $90 benchmark following Iran’s assault on Israel over the weekend.
Iran’s retaliatory strike against Israel, prompted by a suspected attack on its consulate in Syria earlier, marked a significant escalation, sparking concerns of a broader regional conflict.
“Iran’s strike on Israel marks a pivotal moment, with potentially lasting effects on oil prices,” stated UBS analyst Giovanni Staunovo. “The duration of any price increase will hinge on Israel’s response and decisions made during today’s G7 virtual meeting, particularly regarding Iranian crude exports.”
The closure of the Strait of Hormuz, a critical passage for one-fifth of the world’s oil, looms as a possibility, amplifying market uncertainties. Reports of Iranian forces commandeering a Portuguese-flagged vessel in the region add to these concerns, further fueling speculation about disruptions in oil shipments.
Israel, on the receiving end of the attack, confirmed interception of a significant portion of the incoming threats, emphasizing its technological superiority and military coalition. However, the nation has yet to announce its official response to the assault.
READ ALSO: Iran-Israeli Crisis: Crude Oil Prices Surged Beyond $90 Per Barrel
President Biden, condemning Iran’s actions, revealed prior military preparations and announced a diplomatic initiative with G7 leaders to address the situation.
The global oil market, heavily influenced by geopolitical events, experiences fluctuations in response to changes in supply and demand dynamics. Nigeria, a major oil exporter reliant on crude sales for revenue, closely monitors such developments due to their potential impact on global trade and oil prices.
