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Oil prices rose sharply after The Killing of a top Iranian general in Iraq.

analysts warned that The Action could production escalate tensions in the region and the impact on the global Oil .

The Price for Brent crude Oil rose More Than 3% and at one point hit $69. 50 per barrel, the highest level since September.

It came after you at the airport of Baghdad, described The Pentagon as "a defensive measure".

The Price spike pushing Oil stocks on the London stock exchange higher, with BP up 2. 7%, and Royal Dutch Shell almost 1. 9% higher.

the shares of US Oil companies such as Exxon Mobil fell, however, in The Middle of a major US market fall prompted by weak manufacturing data and concerns about the impact of the Middle East conflict.

The Dow and the Nasdaq closed up 0. 8%, while the S& P 500 fell by 0. 7%. The decline in the record high was followed by A Day earlier.

"in the year 2020, opened on a very positive note," said Aneeka Gupta of Wisdomtree Investments . "This event has, in fact, the COP of the optimism that we have seen stopped. "

sanctions

tensions between the US and Iran have an increasing trend since 2018, when the United States pulled out of a nuclear deal meant to curb Iran's nuclear program and preventing the country from developing nuclear weapons.

The US re-imposed sanctions against Iran, a move that has shaken the economy of the country, and strictly limits its Oil exports.

This last blow caused the fear of an increased risk for the energy supply of the region. The Price of The International benchmark, Brent crude Oil climbed 3. 5% on Friday, while the U. S.-Oil of rose, known as West Texas Intermediate of about 3%.

the increase is a little muted, suggesting that investors expect that the response to The Killing can be curbed, said Adnan Mazarei, a senior fellow at the Peterson Institute for International Economics and former Deputy Director for the Middle East in The International monetary Fund.

But if The Strike leads to a larger military confrontation than he expected could be an even greater increase in the prices of lead.

"It is likely that this Problem is only going to die," he said. "I expect that in The Most likely scenario is an increase in the voltage is. and if that happens, [it will be] a further sustainable increase in The Price of Oil . "

the Middle East is the home of several of The World 's largest Oil producers, including Iraq, where the US and Iran have often.

as much as a fifth of global shipments through the Strait of Hormuz, a narrow passage, the access to The Persian Gulf.

Mr Mazarei said the economy of the other countries in the region such as Lebanon, are also vulnerable, with investors and companies at home and abroad are likely to curtail activity in The Middle of the uncertainty is how the U.S.-Iranian conflict.

"This set of recent events. in some ways, significant problems for the region in terms of economic performance," Mr Mazarei said. "You should expect that the considerable social pressure and hardness. "

Even if tensions subside, Caroline Bain, an analyst at Capital Economics, said that the company expected that The Price of Oil to move higher this year, due to the "output restraint, the slower growth in U.S. Oil production and a gradual recovery of global Economic Growth ".

What does this mean for the Oil markets?

analysis by Andrew Walker BBC World Service economics correspondent

The disturbances on The World market for Oil out of the conflict in The Gulf is heavier.

The U.S. Energy Information Administration estimates that 21% of the Oil in 2018, through the Strait of Hormuz, a narrow passage, which Iran has on its Northern shore.

Some of the largest producers would be affected if the road could not be driven safely. Saudi Arabia , Iraq, Kuwait, Iran, UAE, and Qatar, all of the ship, some or all of their exports across the street.

Saudi Arabia and the United Arab Emirates have pipelines bypassing the street, but you do not have nearly the capacity of any Oil . There is also the possibility of the Iranian military actions against other countries, " Oil installations.

Last year, there was a drone attack on the Saudi industry. Houthi rebels from Yemen, the responsibility, and they are widely considered to be the Iranian support.

the Previous episodes of the conflict in the Middle East have seen higher Oil prices, the contribution to the global economic downturn of the mid-1970s until the early 1990s.

What is the difference, and what could be moderate, which will react to the impact of The Presence of the US shale industry, to be delivered relatively quickly to shortages and higher prices.

oil, oil & gas industry, economics, energy industry

Source of news: bbc.com