Economist predicts surge in global oil prices if Israel targets Iran’s oil facilities
Date
10/10/2024 3:56:01 AM
(MENAFN) Economist Anwar Al-Qassem predicts that if Iranian oil facilities are targeted, global oil prices could surge to over USD130 per barrel. Currently, oil prices are hovering around USD70 per barrel, but a significant escalation in military actions in the Middle East, especially against critical energy infrastructure, could send shockwaves through global markets. Al-Qassem emphasized that the consequences of such a strike would not only affect oil prices but could also disrupt the broader international economy. According to the International Monetary Fund (IMF), such an event could weaken global economic growth by approximately 0.4 percent.
Al-Qassem, speaking to a news website, underscored the gravity of a potential strike on Iranian oil facilities. He pointed out that this type of attack would have a profound impact on international markets, which are already grappling with inflationary pressures. Many economies are still trying to recover from previous crises, and the added strain of disrupted oil supplies would likely aggravate existing economic challenges. Oil market stability is crucial for many countries, and any significant disruptions could intensify inflationary trends, worsening the economic environment for businesses and consumers alike.
The economist further explained that a broader escalation of military operations or the outbreak of a war in the Middle East could dramatically alter both the global economic and political landscape. Such a conflict could draw in other international actors, increasing the risk of further destabilization. The ripple effects of a war in this volatile region could extend beyond oil markets, impacting global trade, investments, and political alliances. The possibility of a prolonged conflict could lead to long-term economic uncertainties that would affect various sectors, from energy to manufacturing.
Additionally, Al-Qassem pointed out that Israel may be taking advantage of what he perceives as a moment of weakness for U.S. President Joe Biden. He suggested that Israel is engaging in aggressive military actions that fall outside the boundaries of international law, feeling secure in the absence of potential repercussions. According to Al-Qassem, Israel's confidence stems from its belief that it is insulated from punishment on the global stage, allowing it to act unilaterally without fearing significant diplomatic or legal consequences. This dynamic, he warned, could further complicate the geopolitical situation in the region.
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