Middle-East Conflict and its Impact on Crude Oil Prices
With the Middle East comprising almost half of the world’s oil reserves, this region is crucial in determining crude oil prices. Since crude oil is traded as a commodity in the markets, the geopolitical conditions of this region directly impact the oil supply, which in turn affects oil prices.
In this blog, we will examine the Middle East conflict’s impact on crude oil prices and scrutinize the crude oil futures price.
The Crude Oil Price Scenario in the Global Market
In April 2024, The International Monetary Fund (IMF) outlined an adverse scenario where any escalation in the Middle East conflict would lead to a sharp 15% rise in oil prices. In addition, the disturbance in shipping routes would lead to a surge in shipping costs, which can spike global inflation by 0.7%!
Washington-...