2023-12-09 12:38:57
Conflict between Israel and Hamas leads to rise in oil prices
The ongoing conflict between Israel and Hamas has caused a surge in oil prices, disrupting the global oil trade and raising concerns about the stability of the energy market.
Since the outbreak of the war between Israel and Hamas, oil prices have been on the rise. On October 19, it was announced that oil prices increased by 1.9%, representing a $1.69 per barrel increase in the price of crude oil. Additionally, the World Bank warned that the price of a barrel of crude oil could reach up to $150.
The conflict has also had a direct impact on energy operations in the region. Following an attack by Hamas on the Otaf settlements, Energy Minister Israel Katz ordered the Tamar gas rig operated by American Chevron company to cease operations due to security concerns. The rig, which provides a significant portion of gas to Israel, Jordan, and Egypt, will continue to transport natural gas to Egypt and Jordan through alternative pipelines despite the security concerns.
While the conflict has not caused direct interruptions in the world oil trade, OPEC countries and Russia have initiated trade interruptions, causing concerns among European Union countries about potential damage to the global oil trade. The European countries are particularly worried about the impact on the supply of energy, especially in the face of a cold winter and energy shortages.
The conflict has also affected plans to locate gas off the coast of Gaza, where natural gas and oil deposits have been found. Plans to establish an energy corridor connecting India, the Middle East, and Europe to compete with China’s “Belt and Road” plan have also been impacted by the conflict.
Furthermore, the conflict has raised questions about Israel’s interest in the natural gas deposits in Gaza’s maritime territory and the oil sources in the West Bank. The regional interest is to stop the war and prevent further escalation, while also developing the export of oil and gas for the benefit of Israel and Palestine.
The conflict has also affected geopolitical relations, leading to the freezing of the normalization of relations between Israel and Saudi Arabia. This has hindered the realization of the plan to establish an energy corridor from India through the Middle East to Europe.
As the conflict continues to escalate, concerns about the global energy supply and the stability of the energy market persist. The impact of the conflict on the oil and gas industry and the potential long-term implications for the region and the global economy are yet to be fully realized.
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