Oil Increases Due To Iranian Attack

Oil prices spiked after the large Iranian attack on Israel over the weekend, signaling a potential peril for the American economy as well as potential further instability if the war expands. The Iranian drone and missile strike on Israel represents a significant escalation in the current Middle East conflict that began last Oct. 7.

Oil prices reached a six-month high on Friday before the attack. However, oil futures rose significantly following the launch of the attack.

Despite the scale of the attack using hundreds of missiles and drones, there was no significant damage to any oil production or distribution systems.

Brent crude prices pushed above $92 per barrel Friday while U.S. West Texas prices increased to more than $85.

The possibility of a wider conflict could increase oil prices further, especially if the current uncertainty remains or grows.

Furthermore, the increased prices could have upward pressure on inflation, potentially harming the U.S. economy.

Much of the world’s oil flows through or near Iran, especially through the crucial Straits of Hormuz. Iran has testy relations with a number of other Middle Eastern states, including Saudi Arabia.

The Iranian attack stoked concerns of a larger conflict in the Middle East. Iran has supported a number of indirect attacks on Israel through its proxies but directly prior to last week.

The attack stood to potentially disrupt some of the most important energy corridors on the planet. This includes the Iranian seizure of a Portuguese-flagged and Israeli-linked commercial vessel in the Persian Gulf.

Despite the scale of the attack, a large majority of the drones and missiles did not make it to Israel. The handful of missiles that struck the country caused only minor damage and the injury to one Israeli child.

U.S. Defense Officials are reporting that upwards of 50% of the between 115-130 Iranian Medium-Range Ballistic Missiles that were launched by the Islamic Revolutionary Guard Corps (IRGC) last night towards Israel either Failed to Launch or Crashed before reaching Israeli… pic.twitter.com/oThwB6sjYf

— OSINTdefender (@sentdefender) April 14, 2024

Furthermore, many of the Iranian missiles failed to launch at all or crashed on their way to Israel.

The strike could also realign much of the politics of the Middle East as Israel was aided by Jordan, Saudi Arabia and Egypt during the incident.

Iran declared victory following the attack.