Hezbollah has confirmed the death of its leader Hassan NasrallahImage Credit Source: @Iran_in_India
The death of Israel’s greatest enemy, Hezbollah chief Hassan Nasrallah, may cause inflation in the world. Yes, this is not just said like that. The death of Hassan Nasrallah may cause great tension in the Middle East. The effect of this can be seen in the Middle East oil supply and an increase in crude oil prices can be seen. Just like on September 27, the rise in crude oil occurred solely because of tensions in the Middle East. Now the head of Hezbollah has been killed by Israel’s airstrike. To which Lebanon will also be willing to respond. Middle Eastern countries will also support it.
The effect of this tension can be seen in crude oil prices on Monday. According to experts, the price of crude oil could rise by up to 5 percent. This means that Brent crude oil prices may approach $72 to $75 per barrel. If this happens, the greatest impact will be seen in those countries in the world that depend solely on the import of crude oil. Let us also tell you what crude oil prices are today and what impact the death of Hezbollah chief may have on crude oil prices.
Tension may increase in the Middle East
Following the news of the death of the Hezbollah chief, tension has spread throughout the Middle East. According to a Reuters report, Iran’s Supreme Leader Ayatollah Ali Khamenei has been moved to safe havens. On the other hand, Israeli airstrikes continue continuously against Hezbollah bases on the Israeli side. On the other hand, Iran is busy establishing contacts with Hezbollah and other regional organizations so that it is possible that Israel can be responded to soon. This means that tension in the Middle East will surely increase in the coming days. The effect of this can be clearly seen in crude oil prices.
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Crude oil prices may rise
After the death of the Hezbollah chief, an increase in crude oil prices can be observed on the global market. According to experts, the price of crude oil could rise by up to 5 percent. After which the price of Brent crude oil could reach $75 per barrel. On the other hand, there will be an increase in the price of US crude oil. That can go beyond 71 dollars per barrel. This means that both types of oil could see an increase of $3 or more. On Friday, due to tensions in the Middle East, the price of Brent crude oil increased by more than 0.50 percent and the price of US oil increased by 0.75 percent.
Current crude oil prices
If we talk about the price of crude oil, then the price of Brent crude oil stands at $72 per barrel. In the last month, the price of Brent crude oil has dropped 11 percent. If we talk about the current year, the price of Brent crude oil has fallen by more than 7 percent. On the other hand, if we talk about the price of American crude oil, it has fallen by 10 percent in a month and currently the price has reached $68.18 per barrel. That can go beyond $71 per barrel.
Also Read:- How much wealth did Israel’s greatest enemy, Hassan Nasrallah, leave behind?
what the experts say
Ajay Kedia, director of Kedia Advisory, says the death of the Hezbollah chief is a big trigger for the rise in crude oil prices. When markets open on Monday, an increase of up to 5 percent in crude oil prices may be seen. This means that the price of Brent crude oil can jump from $72 to over $75 per barrel. In the coming days, the tension in the Middle East may affect crude oil prices, because this tension may increase further due to the disruption of oil supplies and possible retaliatory measures by Iran and Iraq.
