Oct 02 (V7N) – Global oil prices have spiked as instability in the Middle East intensifies due to Iran’s missile attacks on Israel. Fears of an escalating conflict, which could potentially lead to an 'all-out war,' have caused unease in the oil market, raising concerns about potential disruptions in the global supply chain.

Brent crude prices rose by 1.13%, reaching $74.39 per barrel, while US West Texas Intermediate (WTI) increased by 1.48% to $70.86 per barrel. The surge in prices reflects growing apprehension among traders over the impact that military unrest could have on commercial shipping, particularly through the Strait of Hormuz, a critical passage for global oil trade.

The Strait of Hormuz, located between Kuwait and Oman, sees about 20% of the world’s oil trade pass through it. Iran, the seventh-largest oil producer globally and a key member of the Organization of the Petroleum Exporting Countries (OPEC), alongside major oil-exporting countries like Saudi Arabia, the UAE, Kuwait, and Iraq, relies heavily on this route for oil exports. Disruptions to shipping in this area would significantly affect global supply, further exacerbating price increases.

The situation remains volatile, and if the conflict escalates, the oil market could face further instability.

END/RH/AJ