The US attacks in Iranian nuclear sites “are likely to introduce short-term volatility to global energy markets,” political analyst and Makkah News Paper columnist Faisal Alshammeri told Sputnik.
The actual impact on energy prices, however, will depend more on how Iran is going to respond.
“A symbolic or contained reaction may limit market tremors, while broader escalation could lead to more substantial and sustained price increases,” Alshammeri elaborates.
The Fate of Hormuz Strait
It remains to be seen whether Iran would resort to closing the Strait of Hormuz as such a move is difficult to sustain, “given the presence of US naval forces and the likely diplomatic fallout even among Iran’s limited partners.”
New attacks by the Houthis on US-linked shipping in the Red Sea may create problems for the US economy in the form of “longer shipping times, higher insurance costs, and inflationary pressure in certain sectors.”
“However, the extent of the damage depends on the scale and duration of these threats,” Alshammeri points out.
