As military tensions between Iran and Israel continue to rise, experts caution that the global oil market could experience significant disruptions. Energy analyst and former Iraqi Ministry of Oil spokesperson Asim Jihad stressed the risks in one of his interviews.
He explained that about one-third of the world’s oil-roughly 20 million barrels daily-passes through the Strait of Hormuz. Therefore, if Iran closes this critical passage, it could spike oil prices past $100 per barrel.
Furthermore, Jihad highlighted Israel’s recent strike on Iran’s South Pars gas field. This attack temporarily halted one production unit, reducing gas output by 12 million cubic meters per day.
The strike adds to a string of Israeli operations targeting Iranian oil infrastructure. These include attacks on the Abadan refinery, which handles 400,000 barrels daily and stores 10 million barrels.
Additionally, the Bandar Abbas refinery, with a daily processing capacity of 320,000 barrels and storage for 8.5 million barrels, also suffered damage.
The Isfahan refinery, a major oil processing hub with over 370,000 barrels daily throughput, was similarly targeted. In response, Jihad warned that Iran could retaliate by striking Israeli energy facilities.
Potential targets include the Haifa and Ashdod refineries, along with offshore gas platforms such as Tamar, Leviathan, and Karish. Such retaliation could further destabilize energy markets and inflict severe economic damage on Israel.
Tensions escalated sharply, when Israel launched a surprise missile strike inside Iranian territory. Iran answered with heavy missile barrages against military sites and infrastructure in Israel for four consecutive days.
This ongoing cycle of attacks and counterattacks increases the risk that the conflict will escalate further. Consequently, this situation threatens to spike oil prices past $100, putting additional pressure on the global energy market.
The fragile geopolitical situation between Iran and Israel continues to threaten oil supply routes. Experts agree that any disruption in this region could trigger a significant jump in oil prices.
As a result, markets around the world remain on edge, watching closely to see if tensions will ease or escalate further. Most importantly, the risk to global energy supplies could spike oil prices past $100, which would have widespread economic consequences.
