Oil prices soar after US attacks on Iran nuclear sites – why they could go higher
Experts fear oil prices could hit $100 a barrel after US strikes on Iran
- Oil prices have surged to nearly six-month highs following joint US and Israeli military actions targeting Iran's nuclear facilities.
- The price increase is driven by investor concerns over potential retaliatory actions from Tehran, specifically the disruption of oil shipments through the Strait of Hormuz.
- Analysts fear Brent crude could reach 100 US dollars a barrel if Iran closes the strategically vital Strait of Hormuz, which handles a fifth of global oil and gas shipments.
- A closure of the Strait of Hormuz could trigger a major stagflationary shock, potentially worse than the 2022 energy crisis, leading to significant global stock market corrections.
- Even a disruption, rather than a full closure, of the Strait could cause a substantial inflation shock and a 5-10% correction in stock markets.