Tension in the Middle East is once again at its peak and the possibility of a direct military war between Israel and Iran is being raised. According to American sources, major military action may take place in the next few days because no concrete result has been achieved in diplomatic talks. In view of this situation, Saudi Arabia and UAE have clearly refused to use their air borders for attacks. This news is important for NRIs living in the Gulf as it will directly affect oil prices and air travel.
How much impact will there be on oil prices and market if there is a war?
If a war starts between the two countries, crude oil prices may jump from the current $65-69 to $108 per barrel. Market experts say that the maneuvers being conducted by Iran in the Strait of Hormuz may have a negative impact on oil supply. This situation is worrying for NRIs living in Gulf countries as it may lead to increase in inflation and travel expenses. From investment point of view, people are now turning to gold as a safe option.
What is the latest stand of Saudi Arabia and America on this matter?
Saudi Arabia and the United Arab Emirates have made a major policy announcement this week that they will not allow their land or military bases to be used for any attack against Iran. America has deployed its two major aircraft carrier warships in the area so that any situation can be dealt with. Crown Prince Mohammed bin Salman is currently playing the role of mediator so that a military conflict can be avoided. Even within Israel, the Home Front Command has advised citizens to remain vigilant and be aware of shelters.
Key Points: Data According to the report, probability of war is 90 percent (next few weeks) Possible price of crude oil at $ 108 per barrel Decisive time frame Next 72 hours to 2 weeks Saudi and UAE’s stance neutral (ban on use of airspace)