**Middle East Tensions Spark Fears of Oil Supply Disruption**
The recent escalation of conflict in the Middle East has sparked concerns about a potential disruption to global oil supplies. Iran’s launch of a ballistic missile attack on Israel has raised the stakes, with analysts warning that the country’s oil infrastructure could become a target for retaliation.
According to experts, up to 4% of global oil supply is at risk, which could send prices soaring to $100 per barrel or more. The conflict has already led to a surge in oil prices, with Brent crude rising 1.44% to $74.62 a barrel and US West Texas Intermediate futures climbing 1.62% to $70.95 per barrel.
Iran, the third-largest producer among OPEC countries, produces nearly four million barrels of oil per day. Any disruption to its supply would have significant implications for the global market. Analysts warn that the situation is likely to worsen before it improves, with Israel’s retaliation expected to be “disproportionately large.”
The conflict has also raised concerns about the potential for a broader regional conflict, with some analysts predicting that Iranian exports could go offline due to an attack. If this were to happen, oil prices could surge to over $100 per barrel, according to some experts.
The situation is being closely monitored by oil market watchers, who are warning of a potential game-changer for global oil supplies. After a period of “geopolitical risk fatigue,” the latest developments have brought the Middle East conflict back into focus, with significant implications for the oil market.
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