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Fear of Iran’s Response to Israel Sends Oil Prices Skyrocketing

Daniel Kim Views  

Yonhap News

West Texas Intermediate (WTI) crude oil prices have surged once again.

On the 10th (local time), the news that the United States and its allies are reporting an imminent primary missile or drone attack by Iran on Israeli military and government targets quickly reversed a previous drop in oil prices, leading to a sharp increase.

WTI rose 1.4%, trading over $86 per barrel before paring some gains. Due to geopolitical risks in the Middle East, prices in 2024 have increased by about 22%.

This news came after Iran announced it was preparing a response to a suspected Israeli attack on its consulate in Syria.

Traders have been closely monitoring the situation, anticipating a rise in crude oil prices.

UBS Group analyst Giovanni Staunovo said, “The next move in crude oil now depends on the type of response from Iran.”

WTI traded almost unchanged, at nearly $85 per barrel, as a stronger dollar and increased U.S. stockpiles added headwinds to crude oil’s recent recovery.

The Organization of Petroleum Exporting Countries (OPEC+) supports the rise in oil prices this year by cutting supply.

Investors are expected to gain a broader outlook on market forecasts this week as OPEC and the International Energy Agency (IEA) release monthly reports.

Daniel Kim
content@viewusglobal.com

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