On October 2, 2024, Iran launched a significant missile attack against Israel, firing approximately 200 ballistic missiles, which has escalated tensions in the Middle East and raised fears of a broader regional conflict. This military action has led to a surge in oil prices, with Brent crude climbing over 1% to $74.40 per barrel, and West Texas Intermediate (WTI) crude rising by 5% to surpass $71 per barrel.
The attack prompted air raid sirens across Israel, leading the Israeli military to advise civilians to seek shelter. Iran claims the assault was retaliation for the death of Hezbollah leader Hassan Nasrallah. While there have been no significant reports of casualties or damage in Israel, the geopolitical implications are profound.
Iran is the seventh largest oil producer globally and a key member of the OPEC cartel, which raises concerns about potential disruptions in oil supply. The Strait of Hormuz, a critical shipping route for global oil trade, could be affected by any military escalation, as approximately 20% of the world's oil passes through this region. Other OPEC members, including Saudi Arabia and the UAE, also rely on this route for their oil exports.
In response to the escalating tensions, Asian stock markets fell sharply, with investors moving towards safer assets. The U.S. dollar strengthened, trading near its highest level against the euro in three weeks, amid speculation of a smaller interest rate cut by the Federal Reserve in November. The situation remains fluid, with experts warning that further military actions could lead to significant increases in oil prices globally.
Source: arynews.tv, indiatv.in, tr.investing.com