Crude oil prices soared their most in over five years on Friday after Israeli airstrikes on Iran put the Middle East on the brink of war, threatening President Trump’s efforts to bring down inflation.
Israel’s attack on dozens of targets in Iran including the capital risks disrupting supply of the world’s most important commodity. The Persian Gulf straddles Saudi Aramco’s vast oil fields near Dhahran on the West and Iran’s gas reserves on the east, representing a chokepoint where roughly a fifth of global demand passing through the Strait of Hormuz.
“This operation will continue for as many days as it takes to remove this threat,” the Israel’s prime minister pledged. Iran’s supreme leader, the Ayatollah Ali Khamenei, vowed to retaliate, suggesting the conflict would escalate.
A sustained spike in crude oil puts upwards pressure on prices, with most fossil fuels and petrochemical feedstocks priced off trading in North Sea Brent, the global benchmark contract. JPMorgan warned the conflict could drive the U.S. consumer price index back up to 5% on the back of $130-a-barrel oil prices in a worst-case scenario,
With this crime, the Zionist regime has prepared for itself a bitter, painful fate, which it will definitely see.
