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Global oil prices have jumped up after Israel said Iran, in a sharp escalation of tensions in the Middle East.
The Brent Crude landline rose more than 10% shortly after the news appeared, reaching the highest level since January.
Traders are concerned that the conflict between Iran and Israel may violate the supplies coming from the rich energy region.
The cost of crude oil affects everything from how much it costs to fill the car to the cost of food in the supermarket.
After the initial jump, oil prices decreased slightly. But Brent Crude was even more than 5% higher than Thursday, trading about $ 74.47 a barrel.
Despite the moves on Friday, oil prices are still more than 10% lower than where they were at the same moment last year. They are also much lower than the tops observed at the beginning of 2022 after Russia’s invasion of Ukraine, when the price of raw rough increased much higher than $ 100 a barrel.
On Friday, rally prices fell through Asia and Europe. The Nikkei share index in Japan ended by 0.9%, while at lunchtime in the UK in the FTSE 100 index decreased by 0.3%.
Stock markets in the US also opened below. On average, Dow Jones Industrial decreased by 1.5%, and the S&P 500 decreased by 0.8%.
The so -called “safe shelter” assets, such as gold and Swiss franc, have reached a profit. Some investors view these assets as more reliable investments during uncertainty.
The price of gold reached the highest level for almost two months, increasing 1.2% to $ 3.423.30 per ounce.
After the Israeli attack, the Israeli Defense Forces (IDF) said Iran launched about 100 drones towards the country.
Analysts have said the BBC that energy traders will now see how much conflict is deteriorating in the coming days.
“This is an explosive situation, albeit the one that could be destroyed quickly, as we saw in April and October last year, when Israel and Iran will hit each other directly,” said the BBC Vandana Hari of Vanda Insights.
“It can also go out into a great war that violates the supply of oil in the Middle East,” she added.
Capital Economics analysts said if Iranian oil and export institutions were sent, the price for a rough Brent could jump up to $ 80-100 a barrel.
However, they added that such a spike in prices would encourage other oil producers to increase production, ultimately restricting prices and inflation.
UK Press Car Corps Rac, Rod Dennis, said it was “too fast” to say what the impact on the latest oil will have on gasoline.
“The game has two key factors: whether higher fuel prices are supported in the coming days, and, most importantly, such retail margins are decided to take,” he said.
In the extreme scenario, Iran may violate the supply of millions of barrels of oil a day when it is aimed at infrastructure or delivery to the Hormus Strait.
Strait – one of the most important delivery routes in the world, about a fifth of world oil passes through it.
At any moment, there are several dozen tankers on the way to the Strait Strait, or leaving it as large oil and gas producers in the Middle East and their customers transport energy from the region.
Restricted in northern Iran and in the south of Oman and the United Arab Emirates (UAE), the Strait Hormus connects the Bay with the Arab Sea.
“What we see now is a very original reaction to the risk. But the next day or two market will need to consider where it can grow,” said Saul Kavonik, head of the energy research department in MST Financial.
Additional Katie Silver reporting
