Iran, Israel tension: Oil prices expected to increase
Ongoing conflict between Middle Eastern countries Iran and Israel has got the world concerned about the impact of supply disruptions in global oil prices.
Missile strikes were exchanged for a sixth day on Wednesday.
Oil prices gained another four per cent on Tuesday, but have since eased in the Asian markets.
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Efficient Group chief economist Dawie Roodt says oil-producing regions under threat usually trigger market fears that lead to price spikes.
He says if the tensions ease, prices could stabilise or even fall over time.
"My expectations are that in the short term we can see an increase in oil price and increase in the petrol price, but as soon as the conflict abates a little bit in the Middle East, for instance, I suspect the oil price will come down and with that, a lower petrol price as well.
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"But that of course depends on whether other countries will get involved and whether it will escalate further, but they usually, what happens is for an increase in oil price and thereafter, a further fall in the oil price in the medium to longer term."
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