Recent news suggests that the price rates of gas and oil have surged. This takes place as Iran continues to launch strikes across the Middle East. The attacks are executed in response to the constant attacks by Israel and the US.
Additionally, natural gas prices rose on Monday after QatarEnergy halted production following "military attacks" on its facilities. QatarEnergy is one of the world's biggest natural gas exporters. Here is a detailed overview of the current conflicts.
Oil prices also rose after Brent crude (the global benchmark oil) hit $82 (£61) per barrel on Monday. This happened after around three oil ships were attacked near the Strait of Hormuz during the weekend.
This incident led Iran to warn vessels to avoid passing through the waterway in the south of the country. Through this route, about 20% of the world's oil and gas is shipped.
There has been a constant conflict between Iran and the US for the past few days. This has led to several impacts. Some of them are mentioned below in detail:
In the US, the Nasdaq and S&P 500 stock market indexes opened lower but fell further in Monday's trading, eventually closing marginally higher.
In London, the FTSE 100 share index closed down 1.2%. The fall came just after the conflict in the Middle East. This is one of the falls in the index for the owner of British Airways
Apart from the above-mentioned losses, banks, including HSBC, Standard Chartered, and Barclays, saw a fall in share prices. This happened due to rising concerns about the constant rise in energy prices. Thus, fuelling inflation, which could lead to fewer interest rate cuts by central banks.
Additionally, the UK Maritime Trade Operations Centre (UKMTO) explained that “two vessels had been struck, and an unknown projectile was reported to have exploded in very close proximity to a third.”
Looking ahead, "The market isn't panicking. There is more clarity that so far, oil transport and production infrastructure hasn't been a primary target by any side," Saul Kavonic, head of energy research at MST Marquee, explained to BBC.
Also read: US Strikes Against Iran: Will Oil Prices Soar Above $80?