Here’s how the oil price behaves amid tensions
Tensions in the Middle East spill over into the oil market due to a possible Israeli attack on Iran oil facilities. Wars affect not only those who suffer from them personally, but also They also hit where it hurts the most: the pocket.. Especially at oil price and to be convinced of this, you only need to look back.
To prove this point, we return to the Iraq War. If in March 2003 a barrel cost about $25, then two years later it cost more than double. increasing its price by 118%.
And this is not the only war in which this happened. February 24, 2022, start day Russian invasion of Ukrainea barrel cost about $100. Not nearly as much as it will cost almost four months later. rose 20% and reached almost $120.
Inflated prices have led to response agencieslaunching aid packages such as the 20 cents per liter fuel rebate that was introduced in Spain.
And all this at a time when the whole world has just suffered a pandemic. COVID-19, this was one of the few times in history when the price of oil fell due to low demand. This happened to $35 per barrel.
However, last week oil prices rose by 9%, thereby once again exposing the “other” consequences of the war. The price of Brent, Europe’s benchmark crude oil, rose to $78. In fact, this Tuesday the price of a barrel of oil experienced its biggest increase this year. after Iran’s missile attack on Israel.
