Despite Iran’s retaliatory attack on Israel, international oil prices are falling.
International oil prices are slightly down in the Asian market on the morning of the 15th. The global benchmark Brent Crude Futures are trading at $90.17 per barrel, down 0.31% from the previous trading day, while West Texas Intermediate (WTI) Crude Futures are trading at $85.28 per barrel, down 0.44%.
From this, it can be deduced that Israel did not suffer significant damage from Iran’s attack.
The international community’s efforts to dissuade Israel from retaliating also contributed to the drop in oil prices.
However, experts unanimously predict that if Israel insists on retaliating despite the international community’s opposition, global oil prices could surpass $100 per barrel and enter a super spike phase, a period of prolonged sharp increase in oil prices.
Iran is the third-largest oil producer among OPEC member countries and controls the Strait of Hormuz, which handles 20% of the world’s oil transport.
If Iran were to block the Strait of Hormuz, a super spike in international oil prices would be inevitable.
Andy Lipow, President of Lipow Oil Associates, predicted, “If Israel retaliates against Iran, international oil prices will surpass $100, and if the Strait of Hormuz is closed, the prices could skyrocket to $130.”