Oil prices rose almost 2% today. The rise was caused by news that Iran is planning an attack on Israel in the coming days, says Commerzbank commodities analyst Carsten Fritsch.
Discarding the geopolitical risk premium seems premature
“Oil prices rose about 2% today, triggered by news that Iran is planning an attack on Israel in the coming days, possibly even before the US elections, according to news portal Axios, which cited to two sources close to Israeli intelligence. The attack will be carried out using drones and missiles launched from Iraq.”
“Earlier in the week, oil prices had fallen significantly after last weekend’s Israeli retaliation for pardoning Iran’s oil and nuclear facilities, leading to expectations that further escalation would not occur. This hope “It now appears to have been called into question, suggesting that dismissing the geopolitical risk premium in the oil market may have been premature.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
