Middle East Tensions: Iran's Call for Israel Embargo Impacts Oil Prices

Iran's call for an Israel embargo raises oil prices amid Middle East tensions. Get insights on the impact and potential consequences of this development.

Oct 18, 2023 - 10:27
Oct 18, 2023 - 10:27
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Middle East Tensions: Iran's Call for Israel Embargo Impacts Oil Prices
Middle East Tensions: Iran's Call for Israel Embargo Impacts Oil Prices

Today, there was a big talk about oil and countries in the Middle East. Iran said something that made the price of oil go up. They suggested that other countries should stop doing business with Israel. This made the price of oil jump, almost reaching $93 for a barrel.

It's important to know that Israel doesn't get most of its oil from the Middle East. They mostly get it from other places. But even though this might not change much for Israel, the things being said are making people worried about a bigger problem between Israel and another group called Hamas. The US and Europe consider Hamas a dangerous group.

Something bad happened in a hospital in a place called Gaza. Many people lost their lives because of an explosion. Because of this, important leaders from Jordan, Egypt, and another group called the Palestinian Authority canceled a meeting with US President Joe Biden. This makes it harder for President Biden to stop the problem between Israel and Hamas from becoming an even bigger issue.

An expert named Richard Bronze talked about how this situation might affect the oil market. He said people are watching closely to see if this problem could make it harder to get oil. Even though Israel mostly gets its oil from places other than the Middle East, what Iran said is making people remember a time in the 1970s when there were big problems with oil, even if this might not be as serious.

Right now, there's still enough oil to go around, so the price isn't going up too much. People are also worried about how the world economy is doing, which can affect how much oil we need.

Jorge Leon, another expert, said that even though the situation in the Middle East is making the price of oil go up a little, there's still a lot of extra oil available. This keeps the price from going up too much.

Israel gets its oil from many different places, including some Muslim countries. While Iran's suggestion might not change much for Israel, it's still something to think about.

People are still not sure what caused the explosion in the hospital. Some say it was because of something Israel did, but Israel says it was a mistake from a group called Palestinian Islamic Jihad. President Joe Biden believes Israel didn't do it on purpose.

This situation is so serious that President Biden made an unexpected visit to the area. An expert named Paul Horsnell said that when things become very risky, it's hard to know how much worse they can get.

In other news, China, a very big country, is doing well economically. They used a record amount of oil last month, showing that they're using a lot of energy.

Also Read: Oil Prices Slide to Three-Week Low Due to Economic Worries

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