Posted: 24.10.2023 11:00:00

Middle East crisis could disrupt oil supplies and trigger price hikes

Fifty years after the 1973 Arab oil embargo, the current crisis in the Middle East has the potential to disrupt global oil supplies and push prices higher, The Associated Press reports


Catastrophic price hikes and long lines at gas stations are unlikely, experts say, but hostilities between Israel and Hamas are ‘definitely not good news’ for oil markets. According to the Head of the International Energy Agency (IEA), there has been a significant reduction in oil production in Saudi Arabia and Russia, and stronger demand from China is also expected.

Markets will remain volatile, and the conflict could push up oil prices higher, Executive Director of the Paris-based IEA Fatih Birol told The Associated Press. Developing countries that import oil and other fuels would be hit hardest by higher prices, he said.