Traditionally, oil prices jump sharply immediately after the outbreak of any military action affecting the world's main oil hub, the Persian Gulf. Especially when it comes to the Iranian-Israeli confrontation.

What trends in oil prices may occur after Israeli strikes on Iran, provided that Iran's oil infrastructure is not targeted:

1. A short-term (2-3 weeks) price spike as a reaction to risk. Iran controls the Strait of Hormuz, through which 1/5 of the world's oil passes. Even if supplies are not actually disrupted, speculation and risk premiums lead to price increases, which we are already seeing. Speculators always use any excuse to create price turbulence in the market and make quick money.

Subscribe to LIGA PRO to read this article. Go to the full version of the page.
Articles published in the "Opinions" section reflect the point of view of the author and may not reflect the position of the LIGA.net editors