Following Iran’s weekend-long retaliatory onslaught against Israel, oil prices dropped on Monday.
On Monday morning, Brent crude, a major international benchmark for oil prices, fell down but was still trading near $90 per barrel. In anticipation of Iranian action, prices had already increased, with Brent crude almost reaching a six-month high last week.
Markets, according to analysts, would be watching to see how the violence may impact international supply chains.
Because so many nations rely significantly on oil for the production of fuels like petrol and diesel, changes in the price of this commodity can have an impact on entire continents. In recent years, there has been a significant global increase in the cost of living, primarily due to rising fuel and energy prices.
Oil prices shot up to $120 a barrel in 2022 due to supply shortage worries as western countries put sanctions on Russia, one of the world’s largest oil exporters. As a result of firms raising their prices to offset increased costs, the increase not only resulted in higher prices at the pump but also in several other commodities.
In the next days and weeks, analysts predicted that Israel’s response to the strike would be crucial for world markets. According to Israeli Defence Minister Yoav Gallant, the conflict with Iran is “not over yet.”
His remarks were made in response to Iran’s weekend drone and missile launches against Israel, which the country had threatened to retaliate for an attack on its consulate in Damascus, the capital of Syria, on April 1.
