Kathmandu. The conflict between Israel and Iran is deepening. Both countries have targeted each other’s oil resources and refineries.
Iran fired several ballistic missiles at Israel’s northern coastal city of Haifa on Saturday. There are many Israeli oil refineries in Haifa. Israel has also attacked several Iranian oil and gas fields and refineries.
According to media reports, many refineries and oil and gas fields in Iran have caught fire. It is believed that this could lead to a big jump in crude oil prices on Monday. This could be the biggest single-day jump in the last 20 years.
Earlier on Friday, there was a big stir in the oil market. Jp Morgan said oil prices could reach $120 a barrel if tensions in the Middle East escalate further. There could be a serious disruption in oil supplies from Iran. This can lead to a very sharp rise in oil prices. This increase will not happen gradually but suddenly. Brent crude futures rose nearly 9 percent to $75.36 a barrel during Friday’s trading.
Production has stopped after an Israeli attack on Iran’s South Parse gas field. It produces 12 million cubic meters of gas per day. Israel’s attack also caused a fire in the Shahran oil field in western Tehran. Israel has attacked two oil depots in Tehran and they are on fire.
Iran says production at the world’s largest gas field has been partially affected. Several Iranian oil refineries have caught fire. Iran produces 3.3 million barrels of crude oil per day. Which is 3.5 percent of the global supply.
Jp Morgan said the attack on Iran could push oil prices to as high as $120 a barrel. This poses a risk of rising global inflation.
In the US, consumer price index inflation could reach 5 percent. Similarly, the price of petrol and diesel in India may also increase. If this happens, central banks may have to stop measures to reduce inflation. The Federal Reserve and the RBI may also have to reconsider the possibility of lowering interest rates. – Agency
