Attacks on Iran Oil Infrastructure to Send Oil Price Over $100

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Ekaterina Blinova

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Israel’s potential attack on Iran’s oil industry may backfire, warned Marc Ayoub, Lebanese energy policy researcher and non-resident fellow at the Tahir Institute for Middle East Policy.

«The damage of Iran crude facilities will certainly have repercussions and cause pressure on the worldwide energy markets,» Marc Ayoub, Lebanese energy policy researcher and non-resident fellow at the Tahir Institute for Middle East Policy, told Sputnik, commenting on a possible Israeli strike.

He noted that in the past few days, oil prices went up and could reach $80 per barrel even before an Israeli attack.

Ayoub’s comment comes at a time when Israel is considering a response to the Iranian retaliatory missile strike. One of options is to hit Iran’s oil infrastructure, American and Israeli media say, citing Israeli officials.

US President Joe Biden’s remark that the option is being «discussed» by Washington and Tel Aviv triggered uncertainty in the markets.

«This could be similar to what happened when Iraq invaded Kuwait in the 1990 depending on the size of the strike, which might lead us to prices above $100,» the pundit continued. «Around 1.5 million barrels per day are expected to be lost.»

Iran can also go nuclear and block the Strait of Hormuz. Around 20 million barrels of oil and petroleum products pass through the strait daily.

«The use of the Hormuz strait will be another escalation, and particularly for some Gulf countries, as around 27% of world oil flows pass through it, including Iran’s shipments to China,» Ayoub said. «And this will put further pressure on supplies and markets.»

Meanwhile, a pressure on Biden to tighten oil sanctions on Tehran from US politicians is growing following Iran’s missile attack. Earlier, in September, a bipartisan group of lawmakers urged Biden to ban Iran’s oil sales to China.

The US doesn’t seem willing to raise stakes in the region prior to the November election, according to the expert. «The risk is currently there, but it doesn’t seem there is a will for further escalation,» Ayoub concluded.