The recent escalation of violence between Hamas and Israel has raised concerns about the potential impact on oil prices. As tensions continue to rise, experts are warning that if the conflict were to escalate into a regional war, oil prices could reach as high as $115 per barrel.
Currently, oil prices are already on the rise due to various factors such as the global economic recovery and increased demand. However, the situation in the Middle East has the potential to further disrupt the oil market.
Israel is a major player in the oil industry, and any disruption to its production or exports could have significant consequences for global oil supplies. Additionally, other countries in the region, such as Iran and Saudi Arabia, could also be affected by the conflict.
Historically, conflicts in the Middle East have had a direct impact on oil prices. The Arab-Israeli war in 1973, for example, led to an oil embargo and a quadrupling of oil prices. Similarly, the Gulf War in 1990 caused a spike in oil prices.
While it is impossible to predict the exact outcome of the current situation, experts are closely monitoring the developments and assessing the potential risks to oil prices. If the conflict were to escalate into a full-blown regional war, it could disrupt oil supplies and lead to a significant increase in prices.