Fears of a big jump in fuel prices

After the joint US-Israeli attack on Iran, there is unrest across the Middle East. Already, a deadlock has been created in the Strait of Hormuz, one of the world's most important energy supply routes. Iran has announced the closure of the Strait of Hormuz, a large part of the world's energy demand is transported through this narrow waterway. In such a situation, the price of crude oil has increased by about 10 percent and has reached about $ 80 per barrel.

Analysts predict that the price of this fuel may rise close to $ 100 as the Middle East is heading towards a new war after the joint US-Israeli attack on Iran.

Ajay Parmar, Director of Energy and Refining (ICIS), said that although the price of oil increases when there is a military attack. However, the main issue here is the closure of the Strait of Hormuz.

He also said that they believe that the price per barrel will be close to $100 by the end of the week and could even exceed that price if the Strait of Hormuz remains closed for a long time. Reuters reported.

Rystad Energy, a renowned energy research firm, has reviewed crude oil.

The firm said that oil prices could rise by at least $20 per barrel as soon as the market opens on Monday (March 2) due to the joint Israeli-US attack on Iran. The main reason for this price increase is the virtual closure of shipping through the Strait of Hormuz.

About 15 million barrels of crude oil used to enter the world market through the Strait of Hormuz every day, which is currently closed. Even if alternative oil infrastructure is used in the Middle East, the market will ultimately remain short of 8 million to 10 million barrels of oil per day.

A $20 increase in oil prices could cause transportation costs and the prices of essential goods to skyrocket around the world, raising fears of renewed inflation.