The Middle East is home to important oil-producing countries like Iran and Saudi Arabia, and it produces more than 30% of the world's crude oil. The world's second-largest oil producer, Saudi Arabia, and Iran, a powerful nation with huge oil reserves, make substantial contributions to the world's oil production.
Iran launched a direct attack on Israel from its territory on April 13 in retaliation for alleged Israeli strikes in Syria, marking the latest escalation in the hostilities between Iran and Israel. Israel has threatened to respond, but it is unclear exactly how it will do so. Possible options include cyberattacks, strikes on Iran's nuclear infrastructure, or measures against Iranian proxy organizations.
Crude oil prices, including Brent and WTI futures, have stayed comparatively steady in recent trading sessions despite the escalating tensions. One important reason for this stability is the ambiguity surrounding Israel's response to Iran's assault. Analysts caution that if escalation continues, oil prices may rise quickly and eventually hit $100 per barrel.
The White House has imposed more sanctions in reaction to Iran's aggression, which are aimed at its drone and missile programs as well as organizations that assist its Revolutionary Guard Corps and military ministry. The goal of these sanctions is to lessen the impact on the world's energy supplies and discourage more escalation.
The Middle East scenario is unstable, despite the fact that crude oil prices are now stable. Any increase in intensity might have a major impact on the world's oil markets as well as the overall economy.