Wider escalation in Middle East can spike oil prices

According to the diplomat, this could “drag the region into a major conflict, and this would naturally affect oil prices” European Union High Representative for Foreign Affairs and Security Policy Josep Borrell warned that a wider escalation of the conflict in the Middle East could lead to a sharp rise in oil prices.

“Everyone knows that we must try to avoid further escalation,” he said in an interview with Spanish television company TVE.”There was a serious attack by Iran on Israel, and we do not know its consequences, and we can expect Israel to respond,” he added.

According to the diplomat, this could “drag the region into a major conflict, and this would naturally affect oil prices.”

“The rise in oil prices would be a serious consequence. The most serious [consequence] would be an open war <…> between Israel and Iran, in which more actors would inevitably become involved,” Borrell noted.

On the evening of October 1, the Islamic Revolutionary Guard Corps (IRGC, the elite unit of Iran’s armed forces) launched a massive ballistic and hypersonic missile attack against Israel.

An air-raid warning was declared throughout the country, and the population was ordered to take shelter. The IRGC said that 90% of the missiles successfully hit their designated targets.

Israel, in turn, said that Iran had fired some 180 missiles into the country, most of which were intercepted.Israeli General Staff vowed to “choose the right moment” to surprise Iran with a counter-attack, while Khamenei, speaking Hebrew, warned that the attacks on Israel will only be expanded.