As Israel and Iran exchange deadly salvoes for a fourth day, there are growing concerns that the conflict will spread across one of the world’s key oil- and gas-producing regions. Equity markets initially were roiled after Israel’s surprise attack on Friday but have since stabilised.A day after Israel killed several of Iran’s top military commanders and nuclear scientists and damaged some of its nuclear sites, Israel then hit Iran’s fossil fuel sector on Saturday with Iranian state media reporting a blaze at the South Pars gasfield. More than 220 people have been killed in the Israeli attacks, including at least 70 women and children, according to Iranian authorities.
Iran responded with a barrage of ballistic missile and drone strikes, a small percentage of which succeeded in penetrating Israeli defences, killing at least 24 people.
On his Truth Social platform, United States President Donald Trump warned Tehran that the next “already planned attacks” would be “even more brutal”, adding: “Iran must make a deal [on its nuclear programme] before nothing is left.”
As the conflict between the Middle East’s two most powerful militaries spirals towards a full-fledged war, financial markets and the aviation sector are taking a hit. Analysts are watching oil prices, and investors are turning to safe havens like gold.
And a full-blown war could make things even worse – much worse, experts warned.
What has happened to the price of oil?
Brent crude, the global benchmark, rallied to $74.60 per barrel early on Monday. Advertisement
That marked an almost 7 percent increase from Thursday, the day before Israel launched its surprise attack.
Much of the world’s oil and other key commodities such as natural gas pass through busy sea lanes in the Middle East, including the Strait of Hormuz.
The strait, a narrow waterway separating Iran from the Gulf states, links the Arabian Sea to the Indian Ocean.
It is a conduit …
