Economics

The world energy market is back threatened: the war in Israel undermines the global economy - Politico

According to experts, Iran, for whom the agreement between Israel and Saudi Arabia, is especially interested in chaos at the world energy market. The world energy markets are again threatened by the attack of Hamas fighters on Israel. Violence can lead to increased US sanctions against Iran and expand the conflict in the Middle East. Any of these factors will threaten a rapid increase in fuel prices, Politico writes.

"Prices began to rise as soon as the markets resumed trade on Sunday evening, October 7, a global landmark rose by 5%-by almost $ 89 per barrel immediately after 9:30 pm. By 9am Monday, the price fell below $ 88,"-emphasizes edition. Some analysts from the Middle East, according to the media, see such an extremely aggressive Hamas invasion of Israel suspicion that the attack was aimed at disrupting any settlement of relations with Saudi Arabia.

In their opinion, Iran is especially interested in chaos, for which such an agreement between Israelis and Saudi has a strategic threat. No wonder, emphasizes Politico, Hezbolla and other Iran groups praised Hamas's attack as "a message to those who seek normalization of relations with Israel.

" The consequences of Hamas attack also, according to market analysts, overshadow the future deliveries from Saudi Arabia - the world's largest oil exporter and the second largest manufacturer after the United States. Global oil supplies have already been in a state of turbulence due to Russia's invasion of Ukraine and related sanctions of the West, implemented against oil exports from the Russian Federation.

Last week, prices fell a little, but many analysts are preparing for their sharp growth in the coming days or weeks, the Politico states. "Prices are likely to increase not so much because the conflict now affects any oil supply, but because of fears that conflict can attract other players such as Iran, who supports Hamas," said Andy Lipou, Head of Energy Department consulting company Lipow Oil Associates. Saudi Arabia leaders expressed their readiness to increase oil production in early 2024.

However, the reaction of the Saudi Arabia government to Hamas's attack was far from the decisive reproach of terrorists. Instead, they called for "restraint" and once again repeated their sentiments on "depriving the Israel of the Palestinian people of his legal rights. " Therefore, the prospects for establishing relations between Saudi Arabia and Israel are currently under a major question mark, experts predict. "Immediately (US President. - Ed.

) Joe Biden faced the calls of both Democrats and Republicans to strengthen the use of sanctions that restrict oil exports Iran, the main sponsor and supporter of Hamas," Politico said. Politico writes that in 2022, Iran ranked 8th among world oil producers, exporting, despite sanctions, about 2 million barrels a day.

Today, the energy market analysts say that the Iranians have become more agitated in evasion of trade sanctions and use transportation from ship to ship, which helps to move more and more oil at China. At the same time, some energy experts expect Baiden administration will indeed strengthen sanctions and this can lead to an increase in world oil prices for $ 100 per barrel.

In an interview with CNN on Sunday, October 8, US Secretary of State Anthony Blinken said that Iranians did not use a single penny of $ 6 billion that Americans "thawed" in September in exchange for the release of five Americans held in Iran. According to the administration, the US Department of Finance is watching these funds and keeping their account. "From day one, Iran, under our law, under our sanctions, had the right to use these funds for humanitarian purposes.

They were moved from one account to another in another country to facilitate use," Blinken said. Politico emphasizes the need to strengthen the US sanction policy against Iran to force Tehran to abandon its nuclear ambitions. "These attacks enhance the need for a more aggressive US policy towards Iran, which should deprive this regime and its resource assistants more effectively," said Sen. Jim Rish from Idaho, Chief Republican at the Senate International Relations Committee.

We will remind, Focus wrote that the Wall Street Journal, citing Hamas and Hezbolla's representatives, stated that Iran approved the invasion of Hamas fighters into Israel and helped organize the attack. In particular, the attack on Israel was planned by officers of the Corps of the Guardians of the Islamic Revolution of Iran and fighters since August.