The tensions in the Middle East continue to cast a heavy shadow on the world’s economy, amid expectations An unprecedented rise in energy prices.
The International Monetary Fund stressed, “It is closely monitoring the escalation in the Middle East, with great concern,” warning that “the conflict may have an impact on the economic situation.”
IMF spokeswoman Julie Kozak said: “We are closely monitoring the recent escalation of the conflict in the region with great concern. The potential for further escalation of the conflict increases risks and uncertainty and could have significant economic consequences for the region and beyond.”
Specialized experts warned of the repercussions of “targeting Iranian oil refineries and gas fields, in light of the mutual threats between Iran and Israel.”
The experts stressed that “energy prices could rise significantly after the decline they witnessed, which would have a serious impact on Europe and China.”
Economist Ahmed Tartar said, “Energy prices rose directly after the Iranian strike on Israel, in light of current fears of the repercussions.”
Tartar pointed out to Sputnik that “the continued exchange of strikes between Iran and Israel may push prices to the level of $100 per barrel, if they get out of control and turn into a regional war.”
He stressed that “Europe has become in dire need of gas and energy at the present time, which means that it will fall into a major problem, due to the continuation of the current situation and the high risks.”
For his part, Dr. Imad Akoush, a Lebanese economic expert, said, “The Iranian strike on Israel, especially regarding the gas facilities located near the city of Ashkelon in southwestern Israel, created a lot of tension and fear in global markets.”
He added to “Sputnik” agency, “The greatest fear is related to what Israel spoke about regarding responding to Iran by striking oil facilities, and thus losing more than a million and a half million barrels that Iran exports daily, especially the Chinese market, which could deprive China of cheap energy, which in turn will… It has a significant impact on its sustainable growth, which it works and strives to maintain.”
Akush said, “The development of the matter leading to the closure of the crossings will inevitably be reflected in prices, but the same matter may force Israel not to take any risks, in light of its need for energy, as it could expose its gas facilities to a attack, and thus stop the entire Israeli economy that today is based on the production of these fields.” And facilities, which makes them think carefully before taking any step within the framework.”
He pointed out that “Europe is always the weakest link, as it is an energy consumer, and therefore any price movement creates a production problem, followed by a wave of inflation again.”
In light of the escalation of tensions in the Middle East, oil prices rose, in Friday’s trading, above the level of $78 per barrel, for the first time since last August 30.
According to what the trading showed, “Brent crude oil futures rose by 0.81% to $78.25 per barrel, while West Texas Intermediate crude futures rose by 0.84% to $74.33 per barrel.”
Last updated: October 4, 2024 – 20:21
Suggest a correction
2024-10-04 19:00:35