Daily Trust reports that escalating tensions between Israel and Iran have caused significant damage to essential oil infrastructure, resulting in a steep increase in global oil prices.
Brent crude oil prices rose by 11.71%, climbing from $66.45 last Monday to $74.23 as of yesterday, following an intraday peak of $78.50, a level not seen since January 27.
According to Reuters, during the session, WTI jumped over 14% to its highest since January 21 at $77.62. WTI climbed 13% to its level a week ago.
Israel and Iranian hostilities have worsened volatilities in the oil and gas sector as investors are on the edge of price instability amidst fear of escalating Middle East conflict.
“So far we are at a stage of ‘controlled confrontation’”, said Lombard Odier’s chief economist Samy Chaar, in an interview with Reuters.
“For now, you get spikes in the oil price, you get volatility, everyone’s a bit nervous, but there is no clear sign that we’re moving towards the no-return type of scenario,” he said
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