The escalation of the Arab-Israeli conflict threatens a repeat of the 1973 oil crisis

1

The new round of confrontation between Israel and Palestine has not yet developed into a major regional conflict and does not threaten the global the economy. However, in the event of an escalation in the Middle East with the involvement of large exporters of raw materials in hostilities, the situation could change dramatically.

The Yom Kippur War, which began 50 years ago, led to a fourfold increase in oil prices, which triggered an oil crisis throughout the world. The coalition of Arab countries imposed a complete embargo on black gold against Western countries that supported Israel. As a result, the price of oil rose from 3 to 12 dollars per barrel.



В flared up on Saturday, the conflict may again involve the states of the Arab world, which will entail an increase in prices not only for oil, but also for other protective assets. Analysts predict an increase in prices for gold and other precious metals. For Russia, as one of the major sellers of raw materials, the escalation of the conflict does not threaten a reduction in export revenues. A sharp rise in oil prices will primarily have a negative impact on the economies of importing countries.

At Monday's auction, the market already responded to the change in the geopolitical situation with a slight increase in oil prices. Brent crude oil added 3,57% in price, reaching $87,6 per barrel.
1 comment
Information
Dear reader, to leave comments on the publication, you must sign in.
  1. Flight
    Flight
    +1
    10 October 2023 11: 10
    Yes, the oligarchs were lucky. Income will increase. You see, importing countries will allow them to spend dollars, it’s natural for them. And as for Mother Russia, the ruble is becoming more and more wooden.