How does Iran’s military response to Israel affect the oil market?

According to Energy Press, Mirgasem Momeni, in evaluating the impact of Iran’s missile operation against the positions of the Zionist regime on the oil market and price, said: Iran, considering the attack contrary to diplomatic custom and international laws and the Geneva Convention, to the Iranian consulate in Damascus, a defense and reaction made a law, but due to the fact that Kharmia and the Persian Gulf are the center and beating heart of the world’s oil and gas production, the price of oil went up.
He added: “The reaction of the market and the price of oil to the recent events is normal, but these fluctuations are temporary and the price of oil will not grow much.” Because western countries and consumers have always sought to ensure that the price of oil does not increase, while the price increase will not benefit the exporters. For this reason, prices may change, but they will not be continuous or stable.

This energy expert said: The issue of supply and demand does not change much, but the main issue is the effect of regional turbulence on the rates of transportation insurance and oil tankers, because insurance companies have specific rules for specific times and routes and emergency conditions, on routes where there is a possibility of danger and threats. They raise insurance premiums and this additional insurance cost will affect the price of oil.

He emphasized about the tension in the Strait of Hormuz and its effect on the price of oil: In the current situation, it is unlikely that the Strait of Hormuz will be closed, because the Persian Gulf countries as well as Iran need this route for oil exports, and for this reason, closing the Strait It is possible that a long-term plan is on the agenda, and this is not happening in the current situation.