Why the Conflict Between Iran and Israel Has Raised Oil Prices Only Modestly

Published On Oct 2, 2024, 8:10 AM

The recent missile attacks by Iran on Israel have heightened concerns over potential disruptions to oil supplies, causing a rise in oil prices. Brent crude oil saw an increase to nearly $76 a barrel. However, these fears are countered by increasing global oil production and reduced demand from China. Despite the chaos, oil supply has remained stable during the past year of Middle Eastern conflict. Analysts note that any significant loss of Iranian oil exports would increase competition for supplies, particularly impacting China, but current diplomatic relations may help mitigate extreme actions for now.

Read full article

Stock Forecasts

USOView USO chart on TradingView

Positive

With the current geopolitical tensions and the possibility of further escalations affecting oil supply, oil prices may continue to see volatility. Investors should watch for additional developments in the Middle East that could impact Iranian oil supply.

Related News

Conflict Between Israel and Iran Adds to Oil Market Volatility

Oct 11, 2024, 5:03 AM

Israel and Iran are fighting at a time when prices are under pressure because of weak demand in China and concerns about oversupply.

USO

Oil prices rise as Middle East tensions escalate, markets hedge against $100 a barrel surge

Oct 7, 2024, 1:33 PM

Oil prices have surged amid escalating tensions in the Middle East, with traders hedging against a "worst-case scenario" that could see prices climb to $100 a barrel.

USO

How an Israeli Strike on Iran’s Oil Sector Would Impact China

Oct 4, 2024, 9:35 AM

China has strategic reserves and alternatives like electric cars, should oil imports ever be interrupted.

USO