Oil prices have stood at the precipice of $100 per barrel as the Israel-Hamas conflict teeters on the brink of drawing in more nations, a possibility that casts a shadow over the global economy.
Brent crude oil remained at $90.89 per barrel after surging nearly 6% last week while U.S. West Texas Intermediate (WTI) crude saw a negligible 2-cent drop to $87.67 a barrel.
Experts highlight the pivotal role geopolitics plays as Hiroyuki Kikukawa of NS Trading states, “Investors are trying to figure out the impact of the conflict while a large-scale ground assault has not begun.”
The Israel-Hamas confrontation poses one of the most significant geopolitical risks to oil markets since the Ukraine-Russia crisis.
Market participants are closely watching potential implications on supplies from top oil-producing nations like Saudi Arabia, Iran, and the United Arab Emirates.
Adding to the complexity, analysts warn that if Iran’s involvement is confirmed, the U.S. may fully enforce its sanctions on Iran’s oil exports. This could significantly impact global oil supply.
As international concerns intensify, U.S. Secretary of State Antony Blinken’s visit to Israel takes on new importance and could shape the conflict’s trajectory and oil markets’ future.
With the Middle East in a precarious balance, the world watches with bated breath as oil prices hover on the cusp of a potentially devastating milestone of $100 per barrel, while geopolitical tensions continue to cast their long shadow.
