Conclusive evidence shows that as Israel turns from Gaza to Lebanon and Iran, the war is entering a new and more energy-related phase. Iran’s oil infrastructure, including its vast network of oil fields, pipelines, storage tanks, export terminals and processing plants, could soon become a target for Israel.
Ultimately, this all means one thing. The conflict in the Middle East could affect global oil supplies on a much larger scale than ever before.
In light of the latest developments, there are three possible scenarios that could play out from this point.
Oil prices could likely rise to $85 a barrel if the United States and its allies impose new economic sanctions on Iran. In addition, oil prices could test the $90 per barrel mark if Israel were to attack Iran’s energy infrastructure. The biggest and most significant impact, however, would be a disruption of flows through the Strait of Hormuz, which could potentially push oil prices back above $100 per barrel.
For a look at all of today’s economic events, check out our economic calendar.