Israel-Hamas War Sends Oil Prices Soaring - All You Need To Know

 

Oil markets have been shaken by the deadly Israel-Hamas conflict in the Middle East, which has driven up prices to $94 per barrel.

Since the battle, the price of oil has increased for two weeks in a row, rekindling concerns among economists and oil traders that markets may surpass the $100 per barrel threshold.

Many fear that an increase in tensions might significantly increase oil prices by stifling a vital transit route for oil and gas cargoes transported by sea.

Despite the crisis, Middle Eastern oil and gas flows have thus far been mostly unaffected. Fears of potential export interruptions have fueled the current increase in prices.

Israel has stopped operations at its enormous Tamar gasfield. Due to this, Egypt’s access to gas has been restricted. Normally, Egypt exports around half of its gas via seaborne tankers, frequently to Europe.

Prices have increased this week despite Europe’s record-high levels of gas storage due to a tanker’s attempt to fill up with LNG in Egypt going empty and being redirected to another port.