Oil Price on Rise With Confirmation of Israeli Attack on Iran

Oil and gold prices surged following reports of an Israeli missile striking Iran, with Brent crude reaching over $90 a barrel before receding when Iran minimized the incident’s impact. Gold briefly neared a record high, settling below $2,400 an ounce.

Concerns over a deepening Middle East conflict disrupting oil supplies heightened, particularly after Iran’s direct drone and missile attack last weekend. Initial reports of the Israeli strike prompted oil prices to rise by up to 3.5%, but they later retreated to $87 a barrel.

Crude Oil (Credits: Shutterstock)

The potential for sustained oil price increases poses inflationary risks, given the commodity’s crucial role in fuel production. The surge in fuel and energy costs has been a significant contributor to global inflation.

Randeep Somel from M&G Investment Management highlighted the inflationary concerns, particularly as the UK’s inflation rate remains around 3.2%, above the Bank of England’s 2% target. He emphasized the importance of avoiding further escalation and minimizing market disruption.

Crude Oil Price Rise

While Brent prices remain below the heights seen after Russia’s invasion of Ukraine in 2022, the current tensions underscore the Middle East’s fragility and volatility, according to energy market expert Vandana Hari.

The situation prompted a negative response in stock markets, with the FTSE 100 and FTSE 250 in the UK dropping by 0.5% and 0.8%, respectively. Similarly, Asian markets, including Japan’s Nikkei 225, Hong Kong’s Hang Seng, and South Korea’s Kospi, experienced declines in early trading.

Josh Alba
Josh Alba
Josh Alba stands at the forefront of contemporary business journalism, his words weaving narratives that illuminate the intricate workings of the corporate world. With a keen eye for detail and a penchant for uncovering the underlying stories behind financial trends, Josh has established himself as a trusted authority in business writing. Drawing from his wealth of experience and relentless pursuit of truth, Josh delivers insights that resonate with readers across industries.
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