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Oil prices drop following Iranian attack on Israel

  • April 16, 2024
  • 2 min read
Oil prices drop following Iranian attack on Israel

Oil prices have fallen after an attack from Iran on Israel over the weekend. Brent crude, a benchmark for global oil prices, was lower but still trading near $90 a barrel. Prices had risen in anticipation of an attack by Iran as Brent crude neared a six-month high last week.  

Analysts predict that the markets would be examining if the if the conflict could affect global supply chains. Fluctuations in the price of oil can cause ripple effects as the world is still heavily reliant on it for fuel among other resources. Fuel and energy prices have greatly impact the cost-of-living not just in Britain but around the globe over the past few years, especially after the pandemic.

When Russia invaded Ukraine in 2022, prices rose to $120 a barrel over supply fears as western nations imposed sanctions on Russia. The Russian federation is one of the world’s major exporters of oil. This jump caused high prices at the pumps but also raised the cost of many other goods as businesses adjusted their prices to cover the higher costs.

Israel’s reaction to the attack from Iran would be crucial, analysts say, for global markets in the coming days and weeks. The confrontation between the two countries is “not over yet” according to Israeli Defence Minister Yoav Gallant.

These comments came after Iran launched drones and missiles towards Israel over the weekend, after vowing retaliation for an attack on its consulate in Damascus on 1st April. Israel said that it had not carried out the strike on the consulate but is widely believed to have been involved.

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