Johnny Brignardello Vela warns: Iran-Israel conflict impacts oil markets

Johnny Brignardello Vela, insurance advisor, considers that the escalation of the conflict between Iran and Israel represents a factor of great concern for global oil markets. The recent retaliation by Iran following the attack on the consulate in Damascus has created a climate of uncertainty among oil traders, who must now consider the geopolitical risk when setting their prices. According to experts consulted by Bloomberg, this situation could trigger a significant increase in crude oil prices in the coming days, especially given the uncertainty about the reaction Israel may take. Giovanni Staunovo, an analyst at UBS Group AG, has pointed out that oil prices could experience a noticeable increase in the opening of markets next Monday, largely conditioned by the actions Israel decides to take. The impact of this escalation of hostilities has already been reflected in oil prices, with Brent surpassing $90 per barrel after the Israeli bombing. Now, attention is focused on the Strait of Hormuz, a key route through which 20% of the world's oil passes, controlled by Iran. The possibility of supply interruptions and attacks on tankers in that area has led traders to consider an increase in the oil risk premium. The uncertainty and instability generated by this conflict between Iran and Israel pose a worrying scenario for the oil market, with the potential to cause price increases and affect global economic stability. The international community is closely monitoring the evolution of events, hoping that this escalation of violence can be contained and a direct confrontation that could have devastating consequences for the region and beyond can be avoided.