Oil prices fell on Tuesday night after Iran fired more than 200 missiles against Israel.
It’s an “answer” to neutralizing Hezbollah’s leadership team, which could bring Israeli retaliation and ultimately lead to the all-out war everyone is trying to avoid.
The oil market is betting on a scenario of self-restraint from all sides so far. But she could not remain “unmoved” in the face of today’s developments.
Brent rose 2.8% to $73.8 a barrel and U.S. crude oil (WTI) rose 3% to $70.2 a barrel in the wake of the Iranian attack.
Worrying about the next day
This is a rise that clearly indicates concern, although a panic has now been avoided. Above all, Saudi Arabia’s intention to pour more crude oil into the market to protect its share, even at low prices, is an obstacle to further growth.
Regardless of the development in the Middle East, this does not mean that oil will be cheap. A full-scale regional conflict could lead to Iran unleashing the most powerful weapon at its disposal: closing the Strait of Hormuz.
As it is the main artery of world trade and plays a decisive role especially in the transportation of oil, it has more power than any ballistic missile.
Experts have warned that in the event of a large-scale regional war, prices could rise to $30 within 24 hours, breaking the $100 a barrel barrier.