Escalation in Israel-Iran Conflict Triggers Moderate Oil Price Increase
Recent military actions between Israel and Iran have contributed to fluctuations in global oil markets, with significant implications for energy supply and geopolitical stability.
Following three days of Israeli airstrikes on Iran, the price of crude oil rose by 15%, reaching an average of $75 per barrel.
This increase is deemed moderate considering the historically low prices observed in recent weeks.
Jean-Louis Schilansky, a former president of the French Union of Petroleum Industries, projected that if the price remains at $75, the cost of gasoline could rise by approximately 8 cents per liter.
The relatively restrained response in oil prices can be attributed to the structure of Iranian oil exports, which largely go to China, limiting the potential for a dramatic price surge.
Currently, Iranian exports range between 1.5 and 2 million barrels per day and face restrictions from U.S. sanctions reimposed in 2018. This means that countries engaging in trade with Tehran risk substantial penalties, as demonstrated by BNP Paribas, which was fined nearly $10 billion in 2014 for similar transactions.
In the wake of the ongoing conflict, Iran has faced significant military losses, with reports indicating at least 224 fatalities and over 1,000 injuries since the start of the strikes.
Among the casualties was Mohammad Kazemi, the head of intelligence for Iran's Revolutionary Guards, who was killed in an Israeli attack along with two other officers.
The Iranian government responded with multiple missile strikes targeting Israel, resulting in at least 13 deaths and 380 injuries.
Recent missile attacks have caused direct impacts on residential buildings in Israel and prompted widespread alerts as sirens sounded across the country.
Israeli Prime Minister Benjamin Netanyahu confirmed the destruction of critical sites, including a significant nuclear facility in Natanz.
Additionally, the Israeli military has been actively targeting missile installations within Iran, further escalating tensions.
The international response is also unfolding, with the European Union's foreign affairs chief Kaja Kallas convening a special meeting of EU foreign ministers to address the crisis.
This meeting aims to facilitate discussions on reducing tensions in the region, given the serious implications of the conflict.
Meanwhile, French President Emmanuel Macron has expressed skepticism regarding Russia's potential role as a mediator in the conflict, implying that Russia's ongoing military engagements undermine its credibility as a neutral party.
As hostilities persist, the geopolitical fissures in the Middle East may intensify, impacting not only regional stability but also global economic conditions, particularly in the energy sector.
This increase is deemed moderate considering the historically low prices observed in recent weeks.
Jean-Louis Schilansky, a former president of the French Union of Petroleum Industries, projected that if the price remains at $75, the cost of gasoline could rise by approximately 8 cents per liter.
The relatively restrained response in oil prices can be attributed to the structure of Iranian oil exports, which largely go to China, limiting the potential for a dramatic price surge.
Currently, Iranian exports range between 1.5 and 2 million barrels per day and face restrictions from U.S. sanctions reimposed in 2018. This means that countries engaging in trade with Tehran risk substantial penalties, as demonstrated by BNP Paribas, which was fined nearly $10 billion in 2014 for similar transactions.
In the wake of the ongoing conflict, Iran has faced significant military losses, with reports indicating at least 224 fatalities and over 1,000 injuries since the start of the strikes.
Among the casualties was Mohammad Kazemi, the head of intelligence for Iran's Revolutionary Guards, who was killed in an Israeli attack along with two other officers.
The Iranian government responded with multiple missile strikes targeting Israel, resulting in at least 13 deaths and 380 injuries.
Recent missile attacks have caused direct impacts on residential buildings in Israel and prompted widespread alerts as sirens sounded across the country.
Israeli Prime Minister Benjamin Netanyahu confirmed the destruction of critical sites, including a significant nuclear facility in Natanz.
Additionally, the Israeli military has been actively targeting missile installations within Iran, further escalating tensions.
The international response is also unfolding, with the European Union's foreign affairs chief Kaja Kallas convening a special meeting of EU foreign ministers to address the crisis.
This meeting aims to facilitate discussions on reducing tensions in the region, given the serious implications of the conflict.
Meanwhile, French President Emmanuel Macron has expressed skepticism regarding Russia's potential role as a mediator in the conflict, implying that Russia's ongoing military engagements undermine its credibility as a neutral party.
As hostilities persist, the geopolitical fissures in the Middle East may intensify, impacting not only regional stability but also global economic conditions, particularly in the energy sector.