Oil prices jumped globally after drone attacks in the Gulf, and reports that President Trump may review military options against Iran increased fears of a wider regional conflict.
Global oil prices have seen a significant increase following reports of rising tensions in the Middle East, drone attacks in Gulf countries and possible US actions against Iran.
Brent crude oil prices in the international market rose above $111 per barrel, while US crude also reached close to $108.
According to reports, concerns have increased over the security of energy facilities in the region after an attempt to target the United Arab Emirates’ Barakah nuclear power plant.
Emirati authorities have launched an investigation into the incident and said that the country has the right to respond appropriately to protect its security.
Saudi Arabia also claimed to have destroyed three drones that entered its airspace.
According to experts, recent attacks in Gulf countries are an indication that tensions related to Iran could affect the region’s energy system.
Meanwhile, US media reports have said that President Donald Trump will soon consult with his advisers on military options related to Iran.
Analysts say that if tensions between the US and Iran increase further, oil shipments through the Strait of Hormuz could be affected, which would have immediate effects on global markets.
Meanwhile, the US has also ended some relaxations in restrictions on the purchase of Russian offshore oil, which has further increased concerns about oil supplies.
According to experts, the global oil market is currently going through a very sensitive situation, and the next few days could prove to be important for the geopolitics of the region.
