Oil prices at highest level in the past two years

Saad al-Kaabi told the <x0Final Times” that the conflict in the Middle East, a region that plays a key role in the global power supply and shipping routes, could “bring down world economies”, reports the BBC.

Brent oil rose by more than 9% on Friday, exceeding 93 dollars per barrel, which is the highest level since autumn 2023.

The rise in oil prices can have widespread consequences, not only in the cost of filling fuel vehicles but also in the price of some forms of heat, food, and imported goods.

There are warnings that if oil and gas prices, which have increased significantly this week, remain high, it could spur inflation in major world economies such as the United Kingdom and the United States, where it has been on a general downward trend.

Kaabi said oil could reach $150 per barrel if the conflict with Iran continues over the coming weeks.

If this war continues for several weeks, GDP growth worldwide will be affected. The price of energy will all increase. There will be a lack of certain products and there will be a chain reaction of factories that cannot supply”, he told FT.

There have been fears that the current crisis may have a similar impact on the invasion of Ukraine from Russia, but so far the rising oil and gas prices remained below the peak levels experienced in 2022.

About a fifth of the world's oil supply is usually transported daily through the Strait of Hormuz. But the traffic in this narrow passage has almost stopped since the US-Israel war with Iran began last weekend. /Periscope