The Rising Oil Prices Amidst The Rising Tension in The Middle East – Oil Price Forecast 2024

Politicians have been busy with the recent unrest in the Middle East, while traders have been concerned with the striking oil prices. After Iran’s recent retaliatory attack on Israel, crude oil prices recorded another jump from $85 to $87, with speculators watching out for what will happen later.

While most officials indicate that the recent strike marks the end of large-scale geopolitical conflicts, the small chance of continuous violence can send prices to new levels. 

Despite the fact that prices slowed down a few days after the April 13th surge, oil price forecasts are uncertain about the future of the largest oil exporter. 

The Middle East Conflict

On April 13th, the conflict between Iran and Israel took a new turn as one of the rare large-scale military operations was carried out by Iran, venging for a previous action by the Israeli side.

The outcomes struck oil prices slightly, as prices surged and rested a bit later. However, should a new series of attacks happen, prices will definitely take a major jump that could potentially reach $100.

Politicians and Iranian officials mentioned that this was the end of the retaliation. However, the Israeli side is still unsure about the decision, especially after stating that military action can still occur. The United States and its allies are trying to impose self-restraint to avoid accelerating the situation, but the future is still unclear.

This is crucial given Iran’s importance as an oil-producing and exporting country with a major influence on the Strait of Hormuz, a critical path for oil transportation.

Crude Oil Price News

After the sharp increase on April 12th to $87, the oil price trend today resides around $84 and $85. A direct attack on the Iranian side can largely threaten oil production and transportation in the region. This can potentially lead to new price records or shooting the Crude oil price to $100 in the best case.

Additionally, furthering the Middle East conflict can lead to more sanctions on Iranian oil exports, harming the global oil supply and sending prices to new highs, even higher than when the Russian-Ukrainian war commenced.

The oil price forecast is split between traders and politicians. An increase in Crude prices generates more profits for the commodity trader. However, this would be at the expense of regional peace.

Crude Oil Price Forecast 2024

The crude oil price prediction depends on Israel’s decision to initiate a considerable military operation or maintain peace in the region. Technical signals and trading tools are indicating “Buy” despite the ongoing efforts to avoid another attack and a new surge in oil prices.

Experts mention that the last price spike was attributed to speculatory factors, while any upcoming events can lead to supply-based price fluctuations.

Regardless of the short-term decisions and instances, the price is more likely to remain in the $80-$90 region in the long term, as markets can dynamically adjust after temporary changes. 

Conclusion

The Middle East conflict directly impacts the oil price forecast, considering the region’s role in producing and exporting oil. The recent wave of violence saw the commodity price jump from $80 to $87 in one day, while traders worry about what will happen and what the next price change will be.