**Oil Prices Soar After Israel’s Strike on Iran, Aiding Russian Economy**
The recent strike by Israel on Iran has led to a significant increase in oil prices. As of now, the price of oil is around $74 per barrel, which is approximately $10 higher than before. This rise in oil prices could have far-reaching consequences for the global economy.
According to Ukrainian investment banker Serhii Fursa, the current situation could lead to a prolonged and intense war between Iran and Israel. A major concern would be if Iran were to close the Strait of Hormuz, which would impact around 20% of the world’s oil supply. If this happens and lasts for more than a day, it would create enormous stress on the oil market, leading to even higher oil prices.
**The Impact on Global Economy**
Fursa emphasizes that if Iran were to strike back against the Americans, pulling the US into the war, we could see even more radical moves from Iran, including blocking the Strait of Hormuz. In such a scenario, both diplomatic and military means would be used to address the situation.
Countries have stockpiled oil reserves that would likely be released in such a crisis. However, this would still cause massive economic stress, particularly for the US. Fursa notes that the current price of oil could soar to as much as $120 in a worst-case scenario, further exacerbating the economic impact.
**Commentary and Analysis**
The recent rise in oil prices is a significant development that has far-reaching implications for the global economy. The potential closure of the Strait of Hormuz would have a devastating impact on the world’s oil supply, leading to even higher oil prices and economic stress.
Russia, led by President Vladimir Putin, could potentially benefit from this situation as Russia is a major oil producer. However, it’s essential to note that such a scenario would also cause significant economic stress for other countries, particularly the US.
In conclusion, the recent strike by Israel on Iran has led to a significant increase in oil prices, which could have far-reaching consequences for the global economy. The potential closure of the Strait of Hormuz and the subsequent rise in oil prices would create enormous stress on the oil market, leading to economic instability worldwide.
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