New Delhi, 13 June (IANS). After the Israeli attack on Iran’s nuclear plants and missile factories, there was a growth of more than 9 percent in the international market due to increasing geopolitical tension in the Middle East by more than 9 percent.
The price of benchmark Brent crude rose by more than $ 6 to a five -month high of $ 78 per barrel.
After the action, Israel has declared Emergency due to the possibility of retaliation from Iran.
At the same time, US President Donald Trump has warned that this could lead to large -scale conflicts, although the US has denied involvement in the Israeli attacks in any way.
Israel has taken this action after the sourness in talks between the US and Iran on the nuclear deal.
This struggle is likely to put pressure on the world’s oil supply.
According to a report by MK Global, Iran produces about 3.3 million barrels (MBPD) per day (about 3 percent of global production) and exports about 1.5 MBPDs, with the main importer China (80 percent) and Turkey. Iran is also on the northern edge of the Hermuz Strait, through which 20 MBPD+ crude oil is traded in the world.
Hormuz Strait is a choke point in the Middle East. Saudi Arabia and UAE etc. are also shipping through this route and Iran has warned to close it earlier.
The report said that China never followed Western sanctions on Iran due to the US-China trade struggle and continued purchasing as before, although it was reported in the last few months that they had reduced consumption. However, India does not import any Iranian oil.
The report stated that earlier when Israel had attacked Iran and Iran retaliated and both claimed success and denied major damage, the tension was reduced. However, more details in this case are awaited and the oil market will be highly unstable in the near future.
-IANS
ABS/
