Oil prices get another boost from renewed tensions in the Middle East

Brent crude’s price has neared $80/bbl in the wake of renewed fears over oil supply disruptions in the broader Middle East region.

PHOTO: Oil pump jacks. Getty Images

Oil market analysts and traders remain on the edge, heading into the weekend amid uncertainty over whether Israel will target Iran’s oil facilities.

Brent’s price gained after Israeli Defence Minister, Yoav Gallant, said that the Israel Defense Forces (IDF) are prepared to launch an unprecedented attack on Iran.

“Our attack in Iran will be deadly, precise and surprising,” Gallant said on social media platform X (formerly Twitter). “Those who try to harm the State of Israel will pay a price,” he further remarked.

Oil market analysts have reacted to the latest development. “There are persistent fears of a potential confrontation between Israel and Iran, which could disrupt Middle East crude flows, sending shockwaves through the oil market,” SPI Asset Management’s managing partner Stephen Innes said.

On Wednesday, US President Joe Biden spoke to Israeli Prime Minister Benjamin Netanyahu about the latest escalation between Israel and Iran, the White House said in a statement. However, the 30-minute call did not yield any productive outcome, according to oil market analysts.   

The global oil market is “likely to remain choppy,” as the call between Biden and Netanyahu, “failed to ease concerns about the ability of the US to influence Israel’s strategy,” ANZ Bank’s senior commodity strategist Daniel Hynes commented.

By Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online