The price of oil is expected to rise after we hit Iran

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Oil prices are expected to rise when trading on Sunday after the United States bombed Iranian nuclear facilities, which increased the possibility that Tehran will respond by attacking energy infrastructure in the region or shipping in the Strait of Hermoz.

Analysts said that the extent of oil gatherings this week will depend on how to choose the Islamic Republic for revenge, but it is expected that crude prices will open in all scenarios.

“A clear red line has been crossed,” said Jorge Leon, head of geopolitical analysis of energy consulting at Riestad.

He said: “In an extremist scenario where Iran responds to direct strikes or targeting the infrastructure of regional oil, oil prices will increase sharply.” “Even in the absence of immediate revenge, the markets are likely to be priced at a higher geopolitical risk allowance (and) oil prices.”

Oil prices have already rose about 10 percent since Israel launched the first sudden attack on Iran 10 days ago, but it did not violate 80 barrels, largely, because oil supplies from the region were not affected. Brent raw prices, the global standard, reached the highest level of the day in a barrel on Thursday, the highest since January, before closing $ 77 on Friday.

Lyon said that the official introduction of the United States in the war had introduced a “new layer of fluctuations in energy markets”, leaving merchants waiting for the “next step for Tehran”. The global oil markets have been closed during the weekend and will reopen at 11 pm UK local time.

US President Donald Trump warned Iran against additional attacks if Tehran “does not make peace”, but the Islamic Republic has previously pledged revenge if the United States participated. The militants in Iran were already calling for a action on Sunday, as the influential editor of the Kayhan newspaper demanded that the country attack the US Navy in the Gulf and stop the western ships moving across the Strait of Hormuz.

Analysts said that about a third of the oil supplies transported by the sea in the world pass daily through the narrow waterway that separates Iran from the Gulf states, and any attacks on shipping in the strait will immediately lead to high energy prices.

Iran has previously threatened to close the strait, although it is generally considered to be struggling to completely prevent the waterway.

An alternative response that can see Iran attacking oil and infrastructure fields in American allies in the region, such as Saudi Arabia and Qatar. Anxiety from attraction to the conflict, the Gulf states have repeatedly called the Gulf states to the extent to the hostility of hostilities and a return to dialogue.

In a statement on Sunday morning, the Ministry of Foreign Affairs in Doha warned that “dangerous tension” in the region could have “catastrophic repercussions.” The Kingdom of Saudi Arabia said it was following developments in Iran with “great concern.”

Analysts at the S& PLOBAL Commodity Insights said that oil will open on Sunday, but the gathering will reduce by Monday morning if there is no immediate Iranian response.

“The main question is what comes after that,” said James Pambino and Richard Josewick from the S&P. “Will Iran attack the US interests directly or through allied militias? Will Iranian crude exports be suspended? Will Iran attack shipping in the Strait of Hormuz?”

Even if Iranian crude exports are disrupted, increasing production of Opec+ Cartel and current global stocks means that the oil market will remain enough, as long as the Hormuz Strait is still open.

Iran exports about 2 million oil barrels per day, while about 21 million barrels from Iran, Iraq, Kuwait, Saudi Arabia, Qatar and the United Arab Emirates pass daily through the Strait of Hormuz.