Muhammad Al-Erian: Oil prices will rise in response to escalation between Iran and Israel

On Sunday, Mohamed El-Erian, president of Queen's College at the University of Cambridge and a global economist, highlighted the consequences of an Iranian attack on Israel on the oil market. .

The economist posted on social media

What awaits the oil market?

The chart linked by Muhammad Al-Erian shows the price of Brent crude reaching $90.54 a barrel.

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The president of Queen's College added, “Tonight is like an equation involving the extent to which an Iranian attack on Israel will trigger direct retaliation and, if it does, how OPEC Plus will respond to higher oil prices.”

Middle East tensions and their effects on markets

Al-Erian continued, “While the world waits anxiously to see what happens next in the Middle East, it is now clear that the region has changed over the past six months; “What some consider a relatively contained imbalance has become a dangerously unstable imbalance involving a growing number of parties.”

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The economist said, “It is a transition that brings with it more infections and deaths, mental and physical harm, disruption of livelihoods and a dangerous inability to predict the future.”

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Al-Erian concluded his post by saying, “All this is happening against the backdrop of deep humanitarian tragedies in the Gaza Strip”.

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The economist said in a note on Friday that “movements in gold and oil prices reflected the markets' main concerns regarding tensions between Iran and Israel,” adding that “they were accompanied by declines in US government bond yields. The dollar gained strength, while bitcoin and stocks fell.”

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