Oil surges again due to Israel’s conflict with Iran

Oil prices have risen sharply after a new escalation between Israel and Iran. The markets are once again afraid of the big fire in the Middle East.

Oil prices have risen sharply after the new one military escalation between Israel And Iran. Brent rose higher during trading $96 per barreland American WTI was approaching 94 dollarsbefore some of the gains were recouped following announcements of discontinuation attacks.

According to Reutersoil prices on Monday first rose by more than 5% amid a new outbreak of hostilities between Iran And Israelbut then reduced growth after reports that the attacks had stopped. According to the agency, Brent later traded around $94.85 per barrel, and WTI – about $92.07.

Previously, the market recorded a sharper jump: Brent rose to approximately $96.47 per barrel, and WTI was approaching 94 dollars. It was this moment that became another reminder for the markets: the Middle East remains not just a political map, but a switch that can instantly turn on inflation fears around the world.

New escalation

Israeli military statedthat attacked military targets in the western and central Iran. According to Reutersthese strikes were a response to Iranian missile attacks on Israeli targets. Axios clarifies that this was the first Israeli strike on Iranian territory since the April ceasefire.

Israel Defense Forces stated that it attacked military targets belonging to the Iranian regime. In the very logic of the conflict, this is already a dangerous transition: the parties again do not limit themselves to statements, but exchange blows directly, forcing markets to recalculate not only political risks, but also the price of fuel, transportation, insurance and future inflation.

Why are markets so nervous?

The main fear of the market is not only the strikes themselves, but the risk of prolonged destabilization in the zone Persian Gulf and around Strait of Hormuz. A significant portion of the world’s oil and gas supplies pass through this route, so any threat to shipping is immediately factored into the price of a barrel. Reuters notes that concerns about possible restrictions in the Strait of Hormuz have become one of the factors in rising oil prices.

Against the backdrop of escalation, the US dollarwhich is traditionally used by investors as a protective asset. This is a common market reaction to geopolitical stress: when missiles fly faster than diplomacy, capital begins to seek refuge rather than justice. People, as always, first create a crisis, and then call the flight of money a “rational strategy.”

Europe is vulnerable again

The rise in oil prices comes at a time when the global economy is already under pressure from high prices, expensive logistics and uncertainty. For Europe This is especially painful: the region remains sensitive to energy surges, even after the supply realignment of recent years.

If oil settles in a range above 90–100 dollarsthis could again hit fuel, transport, commodity costs and inflation expectations. For the average consumer, this all translates very simply: a conflict somewhere far away quickly turns out to be in the receipt at the gas station, in the price of delivery and in the cost of groceries.

Diplomatic background

The new outbreak of violence has become a serious test for the ceasefire that the parties agreed to in April. Donald Trump previously stated that the agreement with Iran close, but the negotiation process remains extremely fragile, and tensions around Lebanon And Hezbollah continues to put pressure on the entire region.

China called on the parties to respect the ceasefire and return to a diplomatic settlement. Representative of the Chinese Ministry of Foreign Affairs Lin Jian stated that the parties must fulfill their ceasefire obligations, maintain the negotiating momentum and resolve disputes through political and diplomatic means. China Daily

Editorial comment

The new escalation in the Middle East shows how fragile the balance in the region remains. One exchange of blows – and the oil market instantly remembers that it lives not in the tables of analysts, but next to the straits, military bases, missiles and politicians who call this a “controlled situation.”

For markets, rising oil is an alarm signal. For governments, there is a risk of a new round of inflation. For Europe, this is a reminder that energy security does not end with beautiful declarations of diversification. And for ordinary people – the prospect of paying more for fuel, transportation and goods again, because somewhere another “limited operation” suddenly became a global economic problem.

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