Iran-Israel conflict: Fuel prices continue to rise in the global market

The ongoing conflict between Iran and Israel is having a direct impact on the global energy market. Oil prices have started to rise further due to concerns about disruption of fuel supply as the threat of war in the Middle East increases.

In a report on Monday (June 16), the news agency Reuters reported that the price of Brent crude rose by 64 cents, or 0.86 percent, to $74.87 per barrel in the morning. On the other hand, the price of US West Texas Intermediate crude rose by 76 cents, or 1.04 percent, to $73.74.

Even at the beginning of the day, the price had risen by as much as $4 per barrel. Earlier, on Friday (June 13), both indices had risen by seven percent to their highest levels since January.

On Monday, Iran launched missile attacks directly on the Israeli cities of Tel Aviv and Haifa, destroying many homes. This incident has raised concerns around the world. This issue is likely to be discussed extensively, especially at this week’s G7 summit.

On Sunday, civilian casualties were also reported in reciprocal attacks by both countries. This is further complicating the situation. According to analysts, the conflict has raised concerns about the security of the Strait of Hormuz. Because about 18 to 19 million barrels of oil are supplied to the world market daily through this waterway, which is one-fifth of the world’s total consumption. Asia, Europe and even the United States depend on this route.

Fujitomi Securities analyst Toshitaka Tazawa said, “The ongoing Israel-Iran conflict has started buying and selling oil in the market, because there is no quick solution in sight. However, as prices increased on Friday, some have been sold in an overreaction.”

He added, “The Israeli attack may cause problems in Iran’s oil production, but if the Strait of Hormuz is closed, oil prices could rise much higher.”