The economist stated the risk of rising oil prices due to the escalation in the Middle East

The situation in the Middle East carries risks for global commodity markets, primarily due to the possible blocking of the Strait of Hormuz, through which a fifth of the world's oil is transported. Alexey Rodin, financial advisor and founder of Rodin Capital, told Izvestia on February 28.

He recalled that Tehran is threatening to block this key artery amid the escalation. The expert believes that the protracted nature of Iran's confrontation with Israel and the United States will lead to an increase in the cost of oil and raw materials. In this scenario, the Russian oil industry may also benefit.

"So far, the reaction of the markets is quite restrained. The main reason is the confidence that the conflict will be of a short—term nature and everything will come down to negotiations," Rodin explained.

In addition, Ekaterina Kosareva, managing partner of the VMT Consult agency, urged not to consider the Middle East crisis as a local episode. In her opinion, it is now a source of strategic uncertainty for the global economy.

"The key intrigue now is related to the fate of the negotiation process. It is still unclear whether it has been completely disrupted or whether the actions are considered as a tool of pressure to strengthen negotiating positions," Kosareva concluded.

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 Iran on the morning of February 28. Also, the American leader Donald Trump announced the beginning of a US military operation against Iran.

Later, Iran fired rockets towards Israel. 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 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.

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