Soaring Oil Prices to Top $120: Expert Warns of Catastrophic Hike in Oil Market if US Enters Iran Conflict
Oil prices may significantly surge if the U.S. decides to engage in armed conflict, according to the expert's warning.
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Since Israel's attack on Iran last week, there's a growing concern that the US may join the Iran-Israel conflict. energy expert Manuel Frondel suspects that if the US takes an active role in the war and the conflict escalates, oil and gas prices might skyrocket, potentially reaching $120 or more.
Frondel, from the RWI-Leibniz Institute, made his prediction to the Rheinische Post, stating, "The Strait of Hormuz, through which the transport of Gulf states and thus a fifth of the world's oil exports runs, is at risk. Iran itself accounts for a mere 2% of the global oil demand, but any disruption to its exports and the trafficking via the Strait of Hormuz could create a major supply shock in the oil markets, causing prices to surge dramatically."
At present, Brent crude has risen from $68 to $76 per barrel. The Strait of Hormuz, a critical maritime chokepoint, could be the primary culprit for any possible increase in oil prices, thrusting them to $120 or higher in the case of escalation. This upward push would lead to a significant rise in gas prices in the US, potentially taking the average price per gallon from around $3.13 to over $5.00.
Other industry sources corroborate Frondel's warnings, claiming that if the US enters the fray, the possibility of oil prices exceeding $100 per barrel seems alarmingly likely. Moreover, they predict that the prices may surge as high as $120 per barrel, causing supply routes to be adversely affected and major turbulence in oil markets.
In the face of the possible war between Israel and Iran, Vice President of the German Bundestag Omid Nouripour emphasized the need for de-escalation. These geopolitical tensions pose a threat to the stability of the entire region, with consequences all way beyond Iran reaching Israel, according to Nouripour. Furthermore, he criticized the Iranian leadership, stating that they are letting central supply systems collapse due to mismanagement and intensifying their brutal repression policy, causing arrests and internet shutdowns to quash protests and political opposition.
Nouripour also weighed in on the Iranian nuclear program, expressing concerns about the potential catastrophic consequences of a nuclear leak. The Member of the German Bundestag made it clear that the threat posed by a nuclear-armed Iran remains real and that Israel has the right to defend its existence and security.
Sources: ntv.de, mau
- Iran
- Iran Conflict
- Iranian Nuclear Program
- Oil Price
- USA
- Note: The potential escalation of oil prices due to US involvement in the Iran conflict ranges from $100 to $120 per barrel. This could have severe implications for gas prices and broader economic stability, as nearly one-third of the world's seaborne oil shipments pass through the Strait of Hormuz.
- The potential escalation of oil prices due to US involvement in the Iran conflict could reach as high as $120 per barrel, according to energy expert Manuel Frondel, posing severe implications for community and employment policies, as nearly one-third of the world's seaborne oil shipments pass through the Strait of Hormuz.
- In the context of the Iran conflict, the Omid Nouripour, Vice President of the German Bundestag, expressed concerns about the potential catastrophic consequences of a nuclear leak and emphasized the need for de-escalation, stating that the current geopolitical tensions pose a threat to the stability of the entire region and could have far-reaching implications, including employment and sports, among other sectors of society.
