Israel’s attack on Iran’s nuclear sites drives oil prices up by $ 10 per barrel, empowering Putin’s war efforts

Israel's recent strike on Iran has triggered a rise in oil prices, which could help Russian President Vladimir Putin improve Russia's economy. Ukrainian investment banker Serhii Fursa says the current price of oil is about $74 per barrel, which is roughly $10 higher than before, 24 Channel reports. 

Fursa notes that oil prices could soar to as much as $120 in a worst-case scenario. He foresees a prolonged, intense war between Iran and Israel. A major concern would be if Iran closes the Strait of Hormuz, which would impact about 20% of the world’s oil supply.

“If that happens and lasts more than a day, it will create enormous stress on the oil market. This is exactly what economists around the world fear, as we will see oil prices much higher than they are now,” the investment banker says.

He adds that Israel’s strikes were highly effective.

“If the Iranians strike back against the Americans and this pulls the US into the war, then we may see even more radical moves from Iran, including blocking the Strait of Hormuz,” Fursa emphasizes.

According to him, if that happens, the situation would be addressed by both diplomatic and military means. Additionally, countries have stockpiled oil reserves that would likely be released in such a crisis. Still, in any case, it would cause massive economic stress, including for the US.