On Sunday, global economist and head of Queens College at Cambridge University, Mohamed El-Erian, highlighted the repercussions of the Iranian attack on Israel on the oil market, pointing to a number of factors and scenarios that await this vital market in the coming period.
The economist said in a post on the social networking site
What awaits the oil market?
The chart attached by Muhammad Al-Erian shows that the price of a barrel of Brent crude reached $90.54.
Per the chart for Brent below, the price of oil rose as tensions between Iran and Israel worsened in the lead-up to the latest escalation.
What happens next is a function of the extent to which tonight’s Iranian attack on Israel triggers a direct retaliation and, should that… pic.twitter.com/uoqwIR5aJg— Mohamed A. El-Erian (@elerianm) April 13, 2024
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The president of Queens College added, “What happens next is like an equation that includes the extent to which the Iranian attack on Israel tonight will cause direct retaliation, and if that happens, how OPEC Plus will respond to the rise in oil prices.”
Middle East tensions and their repercussions on the markets
Al-Erian continued, “While the world waits anxiously to see what will happen next in the Middle East, it has now become clear that the region has transformed over the past six months; “What some viewed as a relatively contained imbalance has turned into a dangerously unstable imbalance involving an increasing number of parties.”
As the world nervously waits to see what happens next in the Middle East, it is now crystal clear that the region has shifted over the last six months from what some deemed as a relatively contained disequilibrium to a perilously unstable disequilibrium involving an increasing…
— Mohamed A. El-Erian (@elerianm) April 13, 2024
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The economist said, “It is a shift that brings with it increasing risks of more infections and deaths, mental and physical damage, disruption of livelihoods, and a dangerous inability to predict the future.”
Al-Erian concluded his post, “All of this is happening against the backdrop of profound humanitarian tragedies” taking place in the Gaza Strip.
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The economist had pointed out in a post on Friday that “the movements in gold and oil prices reflect the major fears of the markets regarding tensions between Iran and Israel,” adding that “they were accompanied by a decline in US government bond yields and an increase in the strength of the dollar, while Bitcoin and stocks declined.”
2024-04-14 01:48:37
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