Global oil prices rise after Israel attacks Iran

Global oil prices jumped after Israel said it struck Iran in a major escalation of tensions in the Middle East.

The price of Brent Maite increased by more than 10 %, reaching its highest levels since January, before losing some gains.

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

The cost of crude oil affects everything from the amount of the cost of filling your car to the price of food in the supermarket.

After the initial jump, oil prices fell slightly. But Brent crude was still above 5 % of the closing price on Thursday, as it was traded by about $ 70.60 a barrel.

Despite Friday movements, oil prices are still less than 10 % than they were at the same point last year. It is also much lower than the summits seen in early 2022 after Russia’s invasion of Ukraine, when the price of crude rose from $ 100 a barrel.

Stock prices fell throughout Asia and Europe on Friday. Today, the Japanese Nikkei share index ended 0.9 %, while the FTSE 100 index in the UK closed 0.39 % less.

The stock markets in the United States are also closed. The Dow Jones industrial rate decreased by 1.79 % while S&P 500 decreased by 0.69 %.

The so -called “safe haven” assets, such as gold and Swiss franc, have gained gains. Some investors believe that these assets are the most reliable investment in times of uncertainty.

The price of gold has reached its highest level for about two months, as it increased by 1.2 % to $ 3,423.30 an ounce.

After the Israeli attack, the Israel Defense Forces (IDF) said that Iran fired about 100 drones towards the country.

The BBC analysts have told that energy traders will now watch the exacerbation of the conflict in the coming days.

“It is an explosive situation, although it is possible to remove it quickly as we saw in April and October last year, when Israel and Iran hit each other directly,” Vanda Insights told the BBC.

“It can also rise to a larger war that disrupts the supply of Middle East oil,” she added.

Capital Economics analysts said that if oil production facilities are targeted and exported in Iran, the raw BRNT price may have jumped between 80 to $ 100 a barrel.

However, they added that such a rise in prices would encourage other oil producers to increase production, which reduces prices and the impact of inflation.

“It is too early” to say what is the effect of the last oil on oil on gasoline prices.

He said, “There are two main factors in playing: Whether the prices of fuel in the high sentence are sustainable in the coming days, and decisively, the marginal retailers decide to take.”

In the short scenario, Iran can disrupt the supply of millions of oil barrels daily if it targets infrastructure or shipping in the Strait of Hermoz.

The strait is one of the most important shipping methods in the world, as about five oils passes through the world.

At any time, dozens of carriers are on their way to the Strait of Hormuz, or leaving them, as a major oil and gas producers in the Middle East and their customers transport energy from the region.

It is bordered by the north by Iran and the south to Amman, the United Arab Emirates (United Arab Emirates), linking the Strait of the Gulf Hermes to the Arabian Sea.

“What we see now is a preliminary reaction to the risks. But during the next day or two, the market will need a worker in the place where this can escalate,” said Saul Cavoni, head of Energy Research at MST Financial.

Additional reports by Katy Silver