Oil prices may about to explode higher.
Last trading at $87.58, it could gush well over $90, even $100 if Iran attempts to attack Israel. Unfortunately, according to the CIA, that could happen in the next 48 hours.
The agency is warning that, “Tehran is said to be planning a combined attack with a “rain” of drones and missiles fired from its bases at strategic locations inside Israel,” as reported by The Express. “This comes after US officials raised fears that the Israeli strike could lead to a wider war in the Middle East.”
As a result of the threat, Israel has reportedly put all of its embassies on high alert, and has warned officials not to go out in public. Israel has also beefed up its air defenses, and called up reservists in preparation.
Meanwhile, according to FreeBeacon.com, “Iran and its military forces in Yemen, Syria, Iraq, and Lebanon held a series of joint war drills on Thursday aimed at supporting “Palestinian Intifada” and sending a warning signal to Israel in the wake of a major strike this week on Tehran’s consulate in Damascus.”
Again, should war break out, oil will explode.
It’s why oil stocks, like Exxon Mobil (XOM), Chevron (CVX), and Occidental Petroleum (OXY) are all pushing even higher.
Not helping, the ongoing war with Russia and Ukraine is still a mess. Ukraine’s drone strikes against Russian oil infrastructure may have disrupted more than 15% of Russian capacity, as noted by Reuters. And as noted by The Guardian, “The scale of the attacks has forced Russia to cut petrol exports and, according to some media reports, led to the US asking Ukraine not to target Russian oil-refining capacity.”
On top of all of this, summer driving season is just around the corner, too.
