Oil market faces a rude awakening if Iran’s energy infrastructure is targeted, analysts say

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Iran,Middle East,Politics

Oil markets are being too complacent given the risk of major supply disruptions in the Middle East, analysts told CNBC on Thursday.

Bjarne Schieldrop, chief commodities analyst at Swedish bank SEB, said that if Iran's oil infrastructure is wiped out, prices could "easily" go to $200-plus a barrel.

Iran, which is a member of the Organization of the Petroleum Exporting Countries , is a major player in the global oil market. So much so, it isthat as much as 4% of the world's supply could be at risk if Iran's oil infrastructure becomes a target for Israel." on Thursday, Bjarne Schieldrop, chief commodities analyst at Swedish bank SEB, said escalating tensions in the Middle East could have dramatic consequences for the market.

Speaking during a visit to Qatar on Thursday, Iranian President Masoud Pezeshkian said his country was "not in pursuit of war with Israel." He warned, however, of a forceful response from Tehran to any further Israeli actions.

The 2019 attack by Yemen's Houthi rebels on Saudi Aramco facilities prompted a sharp rally in oil prices at the time. "That is definitely something every side is talking about, right? The U.S. is involved in this. I don't think we can forget the fact that we have U.S. elections coming up in days, so I think the message from them very clearly is do not hit energy infrastructure. Equally, do not hit the nuclear facilities," Sen said.

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Oil Market Faces Supply Disruptions as War Spreads in the Middle EastAnalysts warn of rising risks to oil supply due to escalating tensions between Israel and Iran. The potential for Israeli strikes on Iranian oil facilities could lead to price increases, though OPEC's spare capacity may mitigate the impact if the Strait of Hormuz remains open.
Bron: nbcchicago - 🏆 545. / 51 Lees verder »