Oil prices fell recently as investors became worried about the growing tensions between Iran and Israel. Many are unsure if the United States might get involved in the conflict, which could affect global oil supply and markets.
Usually, conflicts in the Middle East cause oil prices to rise, as the region plays a big role in the global oil supply. However, this time, prices dropped. This is because investors are trying to understand how serious the situation might become and whether the US will take direct action.
Experts say that if the US decides to step in, it could lead to more instability in the region. This could disrupt oil production or trade routes, especially in areas like the Strait of Hormuz, where a large amount of the world’s oil passes through. On the other hand, if tensions calm down, oil prices might continue to fall.
Investors are also keeping an eye on other global factors, such as economic growth and demand for oil in big markets like China and the US. Slower demand can also lead to lower prices.
For now, the oil market remains uncertain. Much depends on political decisions and how the situation between Iran and Israel develops in the coming days.