**Oil Prices Surge as Middle East Tensions Escalate**
The global energy market is on high alert as US crude oil prices jumped nearly 2% on Thursday, marking the third consecutive day of gains. The escalating conflict between Israel and Iran has sparked concerns about potential oil supply disruptions, sending prices soaring.
According to Claudio Galimberti, chief economist at Rystad Energy, the Organization of the Petroleum Exporting Countries (OPEC+) is sitting on a substantial amount of spare crude, which could help mitigate the impact of any supply disruptions. However, this spare capacity may not be enough to prevent a significant price hike if the situation in the Middle East continues to deteriorate.
Bjarne Schieldrop, chief commodities analyst at SEB, warned that if Israel were to strike Iran’s oil infrastructure, it could lead to a surge in oil prices, potentially reaching as high as $200 per barrel. The risk of supply disruptions in the Strait of Hormuz, a critical oil transportation route, is a major concern for traders.
As the situation unfolds, oil prices have already gained 5% this week, with investors bracing for further volatility. The ongoing crisis in the Middle East has created a perfect storm of uncertainty, and the global energy market is holding its breath, waiting to see how events will unfold.
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