The terrorist attack on Israel has markets jittery about the potential for the warto spread out in the region and send oil prices up along with it.Global oil p
FILE - A pumping unit sucks oil from the ground near Greensburg, Kan. on March 6, 2012. Global oil prices increased by 4% on Monday over concerns of the attack, which comes along with some predictions that prices could approach $100 a barrel due to supply cuts prior to a war starting in the Middle East.
Overall, U.S. oil prices are not expected to jump if the war is contained in the region, which is not a large exporter. That situation could change if fighting spreads. “The Middle East could turn into more of a powder keg if the violence spreads, but many efforts are underway to limit that,” he said. “For now oil in the short term may hold into the $80s, but until the national average drops into the $3.30s, we’re at very very low risk of any upward move in gasoline prices.”
Another serious risk for Iran’s involvement is what happens in the Strait of Hormuz, a waterway along the country’s southern border that a large share of the global oil exports shipped by sea pass through each day. The market risks and war in the Middle East come as the U.S.’ petroleum reserve is still far beneath levels from before Biden took office. For the week ending Sept. 29, the preserve had more than 351 million barrels according to the. When Biden took office in January of 2020, the reserve had over 634 million barrels.
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