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foreign media: escalation of conflict between iran and israel may trigger oil market turmoil

2024-10-06

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reference news network reported on october 6an article published on the website of the us "foreign policy" magazine on october 3 stated that after iran launched a large-scale missile attack on october 1, all eyes were focused on the scale and scope of the response israel vowed to make. oil markets are starting to get disturbing hints that iran's oil industry, if not its nuclear facilities, could be on the list of targets for israeli retaliation.

richard bronze, co-founder of energy vision consulting, said: “if you are going to include energy infrastructure in a strike plan, one issue to consider is to weigh two types of options: one that mainly affects iran’s domestic market, and the other that affects iran’s domestic market. such choices are aimed at targets such as oil export terminals, and the impact of these choices on global markets may be much larger and far-reaching.”

the article believes that if israel carries out a comprehensive attack on khark island, iran's oil export trade hub, it will significantly weaken iran's ability to obtain much-needed revenue from its 1.7 million barrels of oil exports per day, but at the cost of exposing everyone else to skyrocketing oil prices, including americans who have a critical election in just a few weeks. more strikes by israel against refineries that produce gasoline for iran's domestic market would hurt tehran in the short term but would have no adverse consequences for global markets.

the article stated that another question is how tehran will respond to a direct attack on its financial lifeline or domestic stability. the last option for iran would be to try to close the crucial strait of hormuz. the strait of hormuz is the throat of the persian gulf, through which one in every four barrels of crude oil transported by tankers passes.

the financial times website said in an article on october 4 that israel is considering striking iran's energy sector, a choice that has disrupted markets and raised concerns that a war in the middle east could threaten global oil supplies.