Tensions in the Middle East, increased oil prices
October 2, 20242 Mins Read
International desk: Oil prices have increased due to the fear that oil supply may be disrupted due to tensions in the Middle East. Reuters reported in a report on Wednesday (October 2) that oil prices on the world market rose by more than $1 after Iran's military strikes on Israel.

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Brent oil futures rose 1.36 percent to $74.56 a barrel and U.S. West Texas Intermediate (WTI) crude rose 1.53 percent to around $71 a barrel. Both benchmark crude oil prices rose more than 5 percent in Tuesday's trade.

Priyanka Sachdeva, senior market analyst at Philip Nova, said, 'Oil markets were mainly relying on the story of global economic weakness due to reduced fuel demand. Yet after Iran launched a ballistic missile at Israel, the threat of disruption to oil supplies in the Middle East increased rapidly.'

Early Wednesday morning, Iran announced that its missile attacks against Israel had ended. However, if there is any provocation, the attack will be carried out again. On the other hand, Israel and the US have threatened to strike back at Tehran, raising fears of a bigger war.

According to Israel, Iran has fired more than 180 ballistic missiles. And Tehran has warned that any Israeli response would be met with 'massive destruction'.

The United Nations Security Council has called a meeting on the Middle East situation on Wednesday. And the European Union has called for an immediate ceasefire.

A note by Capital Economics said, 'A major Iranian strike could drag the US into war. Iran supplies about 4 percent of world oil production. But the important thing is, if Iran's supply is disrupted, will Saudi Arabia increase production?

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A panel of OPEC Plus (OPEC+) will meet on Wednesday and review the oil market situation. However, no policy changes are expected from this meeting.