Oil above $100 may heighten risk of escalation with Iran — Jerusalem Post

Oil prices remaining above $100 per barrel could make it more difficult for the United States and potentially Israel to contain a new escalation involving Iran ahead of elections in both countries. This assessment was published by the Jerusalem Post.

The publication notes that high oil prices coincide with falling Wall Street quotes and concerns about companies in the artificial intelligence sector. According to the authors, this could create simultaneous pressure on the United States through the energy market, the stock market situation and fears regarding the technology sector.

The Strait of Hormuz and supplies

One of the key factors remains the situation in the Strait of Hormuz. According to the Jerusalem Post, the United States is trying to convince markets that the strait is open to shipping and that alternative energy sources exist. At the same time, videos of vessels in distress in the strait and containers in the water may heighten concerns about the stability of supply chains.

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The publication also draws attention to the question of whether a sufficient number of vessels continue to transport energy resources. Attacks on pipelines or transit points in Saudi Arabia could cause disruptions, as repairs to such infrastructure sometimes take weeks.

Risks of new attacks

The Jerusalem Post suggests that the Houthis may pose threats to the Bab el-Mandeb Strait. According to the publication’s assessment, they may also encourage Iran-linked groups in Iraq to carry out further attacks on Saudi Arabia’s oil and gas infrastructure. The article mentions an explosion in Iraq on Saturday that may have struck an Iran-linked group.

The publication writes that Iran is under blockade but may feel more confident about its next steps. The Jerusalem Post points to the possibility of escalation over the next one to two weeks and suggests that Iran and its proxies may seek to take advantage of the period before elections in Israel and the United States.