Yesterday’s rocket attack by Iran on Israel has added to tensions in the Middle East, and this has driven oil prices sharply higher.
There are fears to potential disruptions to supply, and crude oil futures are surging $2.04 to $71.87 a barrel after jumping $1.66 to $69.83 a barrel on Tuesday. The global oil market continues to be volatile.
Analysts are closely monitoring the situation, warning that any targeted strikes on Iran’s oil infrastructure or disruptions to shipping through the strategic Strait of Hormuz could send oil prices soaring even higher. Tamas Varga of PVM, a leading oil market analysis firm, stated, “Any of these events would irretrievably send oil prices considerably higher.”