After the US bombed Iran’s nuclear facilities over the weekend, oil prices are expected to spike given an increased chance Iran responds by attacking energy infrastructure in the Middle East or shipping in the Strait of Hormuz, experts say. (Financial Times)
As of this weekend, oil prices were up about 10% since Israel launched its first surprise attack on Iran 10 days ago.
“In an extreme scenario where Iran responds with direct strikes or targets regional oil infrastructure, oil prices will surge sharply. Even in the absence of immediate retaliation, markets are likely to price in a higher geopolitical risk premium [and] an oil price jump is expected,” Jorge León, head of geopolitical analysis at energy consultancy Rystad, told the FT.