Tensions Rise Over Iran-Israel Oil Conflict

Tensions between Iran and Israel have escalated, raising global concerns over the stability of the oil market, particularly with potential Israeli strikes on Iranian energy facilities. Iranian Minister of Petroleum Mohsen Paknejad recently visited key oil and gas sites, emphasizing support for workers amidst fears of conflict, while Iran's oil production has reportedly recovered to around 3.4 million barrels per day. Gulf nations are wary of being drawn into the conflict and have engaged in discussions with Iranian leaders to reassure them of their neutrality, as the Gulf Cooperation Council seeks to protect their oil assets. Analysts warn that any escalation could lead to a significant supply shock, with OPEC+ holding excess capacity that may be needed in such an event. Iran's successful oil exports, particularly to China, have defied sanctions but remain vulnerable to geopolitical tensions, which could lead to disruptions in the region. Any potential Israeli attacks on Iranian oil facilities could trigger retaliatory strikes on Gulf nations' infrastructures, further destabilizing the oil market.