Expert warns Mideast tensions could push oil prices above $100

Rising Middle East tensions threaten to spike global oil prices above $100, an economist warns.

VIENNA, June 15: Economic and financial expert Dr. Bashir Aliya warned on Saturday that escalating tensions in the region could drive global oil prices beyond the $100 mark, following recent Israeli military strikes targeting nuclear and residential sites in Iran.

Speaking to KUNA, Dr. Aliya noted that the global oil market reacted swiftly and sharply to the Israeli attacks. Crude prices surged by seven percent, surpassing $75 a barrel amid growing concerns over potential supply disruptions in the Strait of Hormuz — a critical maritime route through which nearly 20 percent of the world’s oil trade passes, making it a vital artery in global energy markets.

Dr. Aliya highlighted that Brent crude futures climbed to $74.23 a barrel, marking a significant 7 percent increase, underscoring that the market’s response exceeded initial expectations. He further explained that if the tensions persist, oil prices are expected to remain between $78 and $80 per barrel. However, he cautioned that a full-scale escalation could push prices above $100, or even higher.

The economist also emphasized that sustained high prices would be supported by continuous large-scale crude purchases from China and India. Both nations, particularly China, rely on steady economic growth to avoid recession — a priority that has become even more crucial amid ongoing trade tensions with the United States.

Dr. Aliya’s assessment underscores the vulnerability of global energy markets to geopolitical instability in the Middle East, signaling potential challenges ahead for oil supply and pricing.