Oil Prices Fluctuate Amid U.S. and Israel Military Actions Against Iran

Oil prices experienced significant fluctuations following military actions by the United States and Israel against Iran. According to RTHK, concerns over potential disruptions in oil supply led to an initial surge in international oil prices by over 10%, although the increase later narrowed. Barclays has adjusted its forecast for Brent crude, raising it to $100 per barrel due to the threat of supply interruptions. However, Citic Lyon believes that the likelihood of oil prices exceeding $100 is low, as the tensions are primarily confined to Iran and have not spread to other oil-producing countries in the Middle East. Independent foreign exchange and commodity analyst Lu Churen also suggests that oil prices have peaked in the short term and are expected to decline gradually. He noted that a similar situation occurred in June last year when the U.S. and Israel took military action against Iran, leading to a temporary rise in oil prices that eventually subsided. Furthermore, if the conflict is controlled by the U.S. and Israel, Iran may find it challenging to block the Strait of Hormuz, indicating that the upward trend in oil prices may have concluded.