US Israel Iran War: On Thursday, oil prices increased more than $5 after a stern warning was issued by United States President Donald Trump. In a televised speech, Trump remarked that the United States of America would not hesitate to bomb the oil infrastructure and other critical locations of the Islamic Republic of Iran. This caused dampened investor sentiment and panic in global markets.
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Brent crude futures rose 6.3 percent of $6.33 to $107.49 a barrel while US West Texas Intermediate crude futures were up 5.3 percent or $5.28 to $105.40 a barrel.
US Israel Iran War-What Trump Said?
Donald Trump remarked that the United States would finish the job fast. The US President further added that the US military had nearly attained its conflict goals and the war may just last another 2-3 weeks.
According to market analysts, oil prices could test fresh highs if maritime risks increase or tensions intensify in the Middle East region.
In recent days, maritime traffic threats have surged as the US Israel Iran war continued. On Wednesday, an oil tanker that was leased to QatarEnergy got hit by a cruise missile by Iran in Qatari waters.
Fatih Birol, the head of the International Energy Agency, cautioned that supply disruptions due to the Middle East crisis could possibly start affecting the economy of Europe in April.
Would Basic Essentials Be Affected?
According to many top market analysts, the impact of war would loom over the world even if the war stops immediately now. Global markets like India would find it challenging to cope up with the supply chain disruptions. This may, in turn, cause acute shortage of basic essentials like milk, bread, pulses, rice and wheat. If the war continues for another month or so, the impact could be devastating, especially for developing and under-developed economies of the world.
