Oil markets witnessed a noticeable rise on Sunday, after the Iranian attack on Israel that occurred on Saturday evening, and analysts’ expectations indicate that this rise will continue on Monday, driven by fears of escalating tension in the region. The Iranian attack led to the launching of drones and missiles on Israeli territory, in response to a suspected Israeli raid on the Iranian consulate in Syria.

The Iranian attack caused concern among investors. Which led to a rise in global oil prices. The price of global benchmark Brent crude reached its highest level since last October, at $92.18 per barrel.

This increase in oil prices is due to fears that the Iranian attack will lead to disruptions in supplies from the region. Investors are closely following the reaction of Israel and the international community to the Iranian attack. Oil prices may play an important role in the upcoming US elections. As higher prices may lead to increased inflation; Which may negatively affect President Biden's re-election chances. Another factor to watch is any impact on shipping through the Strait of Hormuz, through which about a fifth of the world's total daily oil consumption passes. The Naval Commander of the Iranian Revolutionary Guard announced Tehran's readiness to close the Strait of Hormuz if necessary.

Iranian reports indicated the detention of a Portuguese cargo ship allegedly linked to Israel. Crude oil prices have already risen to include a risk premium, the extent of which depends almost exclusively on developments near Iran around the Strait of Hormuz. The Iranian attack poses a new challenge to President Biden, who seeks to lower oil prices and ease the blow of inflation on Americans.
Oil markets are very volatile, and prices can change very quickly in response to geopolitical events. It is important for investors to closely follow developments in the region and understand the factors that may affect oil prices.