Conflict may see spike in oil prices

LETTERS: FOLLOWING Israel's strike on the Iranian diplomatic compound in Syria, Iran retaliated by launching more than 300 drones and missiles at the country.

If this conflict expands, the global economy might be at risk, given that Iran is among the largest oil-exporting countries.

With the fourth-largest oil reserves globally, and its exports increasing since the lifting of trade sanctions, Iran stands to gain economically from these developments.

If the conflict escalates, oil prices are expected to surge, threatening the global economy.

This scenario evokes memories of the 1979 oil crisis, where reduced oil production led to soaring prices.

Similarly, in 1980, the Iran-Iraq war caused a sharp decline in oil production in both countries, triggering recessions worldwide.

These cases highlight the alarming consequences of wars involving major oil-producing nations.

Past oil crises serve as stark reminders that without swift diplomatic solutions and a ceasefire, the global economy could bear the brunt of the consequences.


Faculty of Business & Communication,

Universiti Malaysia Perlis

The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times

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