The recent military clashes between Israel and Hamas have caused an increase in oil prices in Asian trade. This has raised concerns about the supply of oil and has created geopolitical risks in the Middle East.
The downturn in oil prices from last week has been reversed, with Brent increasing by 3.67% and West Texas Intermediate crude rising by 3.94%. The previous decline was due to concerns about high interest rates and their impact on global demand.
Analysts are worried that if Iran becomes involved in the conflict, it could put up to 3% of global oil supply in danger. If transit through the Strait of Hormuz is affected, up to 20% of global oil supply could be held hostage.
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