Oil continues to rise with the continued conflict between Iran and Israel

Oil prices rose today, Tuesday, as a result of the exchange of attacks between Iran and Israel, although the main oil and gas infrastructure and their flows have not been strongly affected yet.
Brent crude futures rose $ 2.11, 2.88 percent to $ 75.35 a barrel by 1544 GMT, and US West Texas Intermediate crude rose $ 1.43 or 1.99 percent to $ 73.20.
Both of them rose more than three percent earlier in the session, but they decreased before they climbed again in volatile trading.
There are no indications of a decline in supplies, but Iran partially stopped the production of gas in the southern Pars field, which it participates with Qatar after an Israeli raid that led to the outbreak of fire there. Israel also targeted an oil warehouse in Iran.
Phil Flynn, the chief analyst at Price Futures Group, said that the continued exchange of air strikes between Israel and Iran has restored geopolitical risks to oil markets, which are already aware of a limited balance between supply and demand.
“It will not be a passing event, but it will be more like (war) between Russia and Ukraine,” Flynn added.
“The market is very anxious about the turmoil in the Strait of Hormuz, but the risk of this happens is very little,” said Oli Hansen, an analyst at Saksu Bank.
He added that there is no desire to close the strait because Iran will lose the revenues that it belongs to, and because the United States wants to go down oil prices and reduce inflation.
The two oil tankers collided with and caught fire today near the Strait of Hormuz, where electronic interference increased, highlighting the risks facing companies that transport oil and fuel supplies in the region.
Although the possibility of disruption occurred, there are indications that oil supplies will remain abundant amid expectations of low demand.
In its monthly report on oil issued today, Tuesday, the International Energy Agency reduced its estimates of global oil demand for 20 thousand barrels per day from last month’s expectations, and its estimates of supplies raised 200 thousand barrels per day to 1.8 million barrels per day.
Tamas Varga, an analyst at BMS, said in a memo that investors are also focused on interest rate decisions, noting that the American Federal Open Market Committee is scheduled to discuss prices later today.
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