The analyst admitted a sharp increase in oil prices due to Israeli strikes on Iran

The escalation of the conflict between Israel, the United States and Iran may lead to the blocking of the Strait of Hormuz, which will raise oil prices to $ 150 per barrel. Igor Yushkov, a leading analyst at the Financial University under the Government of the Russian Federation, told Izvestia on February 28.

According to him, most producers in the Middle East, including Kuwait and Qatar, have no alternative routes for exporting oil and gas other than the Strait of Hormuz. Iraq can partially export oil through Turkey, and Saudi Arabia through pipelines to the Red Sea, but these capacities are not able to fully compensate for the volumes flowing through the strait.

"Qatar, with its liquefied natural gas, has no alternatives at all. <...> All 100% of Qatar's gas <... They will be trapped inside the Persian Gulf (The Strait of Hormuz is the exit from the Persian Gulf to the Arabian Sea. — Ed.)," Yushkov explained.

In the case of a short-term blockade, oil prices will rise sharply, the expert notes. In addition, the long-term persistence of extreme values of $ 120-150 per barrel, according to him, will lead to a decrease in consumption and a recession in the global economy.

"Yes, at the moment we are (oil producers. — Ed.) we will make money, but in the long term, accordingly, such price shocks <...> reduce the consumption of oil and gas in the world. Therefore, it is more profitable for us to have a certain tension at all times, which would keep oil prices at a high level — above $70 <...> per barrel. But at the same time, extreme values, $120-150 per barrel, <...> will lead to a decrease in consumption," the expert explained.

Yushkov suggested that such high oil prices could lead to deglobalization, as they would simply be unprofitable for exporters when transporting fuel to other continents.

The Middle East beyond the border: Israel strikes Iran

Israel launches a series of attacks on military and nuclear facilities, Tehran is preparing a response

Israel launched a preemptive strike on targets in Iran on the morning of February 28. US President Donald Trump has confirmed that the United States has launched a large-scale military operation against Iran. He assured that "he will take care to deprive Iran of the opportunity to obtain nuclear weapons."

Later, Iran fired rockets towards Israel. Later, the US Fifth Fleet maintenance center was shelled in Bahrain. In addition, Iran attacked four US military bases in Qatar, Kuwait, the United Arab Emirates and Bahrain. Against this background, the United States began evacuating some personnel from the Al-Udeid airbase in Qatar.

At the same time, the Israel Defense Forces (IDF) launched a massive airstrike on military installations in western Iran. The city of Shiraz was attacked. In addition, 70,000 Israeli reservists were called up for military service.

Saradar Shekarchi, a representative of the General Staff of the Iranian Armed Forces, said that the Islamic Republic holds the United States primarily responsible for launching attacks on the country's territory.

The Russian Foreign Ministry said that Russia demands that the situation around Iran be immediately brought back to a political and diplomatic settlement. As the Foreign Ministry pointed out, the fact that the attacks are being carried out again under the guise of the resumed negotiation process deserves condemnation.

All important news is on the Izvestia channel in the MAX messenger.