Surge in oil prices has been attributed to the Hamas attack on Israel, marking a tragic event that claimed the lives of over a thousand people on both sides of the Israeli-Palestinian conflict. This incident follows a previous dip in oil prices, driven by concerns surrounding high-interest rates and fluctuating oil demand.
These concerns were further exacerbated by the Organization of Petroleum Exporting Countries’ (OPEC) decision to maintain oil production cuts in major oil-producing nations. As of October 9, Brent Crude was priced at $87.70 per barrel, while West Texas Intermediate (WTI) stood at $86.06 per barrel at 5:18 AM (GMT+1).
Interestingly, crude prices had experienced a decline, reaching $84 per barrel just before the Hamas attack on October 7. Oil industry experts currently assert that the impact of the Israel-Hamas conflict on oil prices remains relatively minimal.
However, there is a looming potential for escalation, particularly if influential nations like Iran and the United States become directly involved in the evolving conflict between Palestine and Israel.
Disturbingly, reports from the Wall Street Journal suggest that Iranian security officials played a role in supporting Hamas during the attack on Israel, even green-lighting the assault.
This added layer of complexity and concern intensifies an already tense situation. If Iran becomes embroiled in the escalating conflict, it could affect the country’s oil supply and exports, placing upward pressure on crude prices.