New Delhi: On Monday, oil prices increased 4% on worries that the conflict in Israel and Gaza would stymie Middle Eastern production.
The price of Brent crude also increased in early Asian trading, while the West Texas Intermediate (WTI), the US oil benchmark, grew to more than $86 per barrel.
Although neither Israel nor the Palestinian territories are oil-producing nations, the Middle East accounts for nearly one-third of the world’s supply.
During a Sunday UN Security Council meeting in New York, Iran denied involvement in the recent attack of Hama’s over Israel. Nevertheless, Ebrahim Raisi, the President of Iran, has stated that he supports the strike.
However, the risk premium on oil is rising due to the prospect of a broader conflagration that could spread to nearby major oil-producing nations such as Iran. If the Israel-Palestine conflict envelops Iran, which has reportedly supported Hamas, up to 3 percent of the global oil supply is at risk.
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