Rising Supply Risks and Conflicts Drive Oil Prices Higher

Global oil and gas prices are surging as supply risks increase. The conflict in Israel, with fears of escalation involving Iran, is a major driver of the oil market's sensitivity. The possibility of US intervention and tighter enforcement of sanctions on Iran's oil exports adds to the concerns. Additionally, new US measures targeting Russia's oil prices and the temporary closure of an Israeli gas field supplying Europe pose risks to natural gas supply. Suspected sabotage of critical infrastructure in Europe further heightens geopolitical risks. Despite the price increases, they remain below last year's levels, and Europe's upcoming winter is expected to have muted gas consumption due to high prices.