Oct 17, 2024 (MENAFN via COMTEX) --
(MENAFN) As security concerns escalate in the region, the prospect of a potential regional war has prompted experts to express apprehension about its ramifications on global oil markets. The situation has raised fears of significant fluctuations in energy prices, which could reverberate domestically and internationally.
Recent data from the Ministry of Energy and Mineral Resources indicates that Brent crude oil prices surged by 5 percent during the first two weeks of this month compared to the previous month. Energy researcher Amer Al-Shobaki highlighted that this price increase is part of a broader trend, with prices rising by 12 percent to 13 percent during peak geopolitical tensions. These tensions stem from concerns regarding potential military actions, including possible strikes on oil facilities by Israel in response to Iran, and the subsequent Iranian retaliation that could disrupt oil production and the safe passage through the Strait of Hormuz.
The initial price spikes calmed following assurances from Israeli authorities that any potential military actions would target military installations and would not impact oil facilities. This statement helped temper the price increases, limiting them to a 5 percent rise. However, Al-Shobaki cautioned that unless tensions subside, prices could remain volatile.
Despite these recent reassurances, the geopolitical landscape remains precarious, and various scenarios could unfold. Al-Shobaki warned that unforeseen developments might trigger a sharp increase in oil prices, potentially exceeding USD150 per barrel--an unsustainable level for the global economy. The continuing instability in the region keeps oil prices on edge, highlighting the fragility of supply and the intricate connection between geopolitical events and energy markets.
In conclusion, as the situation unfolds, stakeholders in the energy sector and global economy must closely monitor regional developments. The potential for an "oil tsunami" looms, with significant implications for energy prices and overall economic stability, underscoring the need for vigilance and strategic planning in response to evolving geopolitical dynamics.
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COMTEX_458909580/2604/2024-10-17T19:53:57
