Oil supply concerns grow as Middle Eastern conflict escalates
Concerns over oil supply disruptions from the Middle East have escalated as the Israel Defense Forces (IDF) and Iran-aligned Hezbollah militants have entered a direct conflict, raising fears of regional instability.
PHOTO: Flags of Israel and Lebanon. Getty Images
Crude oil production in the oil-rich Middle East is once again under threat after the IDF and Lebanon-based Hezbollah armed group declared a bigger conflict in the region earlier this week.
Oil market traders are closely monitoring geopolitical developments in the Middle East. Walkie-talkies and other hand-held pager devices used by Iran-aligned Hezbollah armed group detonated on Wednesday across southern Lebanon, Reuters reported. The news of devices exploding has raised concerns of a wider Israel-Lebanon conflict in the oil-rich region.
“In the new phase we have entered in the war with Hezbollah there are significant opportunities, but also weighty risks,” Israel’s Defence Minister Yoav Gallant said on social media platform X (formerly Twitter).
The blasts have caused several civilian casualties, according to media reports. This development has increased concerns over potential supply disruptions in the Middle East.
“The market is also keeping an eye on developments in the Middle East,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked, adding that escalating tensions could lead to broader instability and push Brent’s price higher.
By Aparupa Mazumder
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