Market observers said that oil prices may soar to 100 US dollars or more per barrel. Earlier, Iran launched air strikes against Israel, which once again raised concerns about a regional war.

Iran is rich in oil resources and is OPEC's third-largest oil producer. Analysts said any disruption in its global market supply capacity could push up oil prices. The market will also keep a close eye on developments or closures in the Strait of Hormuz (Hormuz) Strait. The Strait of Hormuz is located between Iran and Oman. It is a key gateway through which one-fifth of the world's oil production passes every day.

Andy Lipow, president of Lipow Oil Associates, said: “Any attack on Iran's oil production or export facilities will push the price of oil up to $100, while the closure of the Strait of Hormuz will cause oil prices to be between $120 and $130.”

On the night of Saturday (April 13), Iran launched more than 300 drones and missiles at Israel. This is the first time Iran has launched a direct military attack on this Jewish country. IDF spokesman Major General Daniel Hagari said the “vast majority” of Iranian drones and missiles were intercepted. A 10-year-old girl was “seriously injured by shrapnel,” but there were no other casualties, he said.

Iran's attack is in retaliation for Israel's attack on its consulate in Damascus, Syria earlier this month. Iran accuses Israel of bombing part of the Iranian Embassy compound on April 1, killing 7 Iranian military personnel, including 3 senior commanders.

Iran's delegation to the United Nations announced that after the air strike, “things can be considered over.” But it warned that if Israel retaliates further, Iran's response will be “much harsher.”

Oil prices fell slightly in early trading in the Asian market. The global benchmark oil futures fell 0.31% to $90.17 a barrel on Monday (April 15), while US WTI crude oil futures fell 0.44% to $85.28 a barrel.

Josh Young, portfolio manager at oil and gas investment company Bison Interests, said that in addition to years of underinvestment in oil exploration and development, recent geopolitical developments have made global crude oil supply more vulnerable.

“Inadequate investment makes supply more vulnerable, and if supply is interrupted, the possibility that oil prices will rise to well above $100 will also increase,” he said. He added: “I think oil prices will reach record highs in this cycle due to underinvestment in exploration and development over the past 10 years.”

Oil production is facing a considerable natural decline. According to Morgan Stanley estimates, the rate of decline in production from a conventional oil well is about 15% without any capital expenditure.

Oil prices have risen in recent months due to disruptions and delays in trade due to maritime attacks launched by the Houthis in the Red Sea.

Brent crude oil continuous daily chart source: Easy Huitong

Brent crude oil continued to report 90.28 US dollars/barrel at 11:53 Beijing time on April 15