Potential Israeli strike on Iran oil could trigger price surge, Barclays saysBarclays said it expects a potential Israeli attack on Iran's oil infrastructure to result in a sustained 1 million barrels per day of disruption in supplies that could drive oil prices at least $15 per barrel higher.
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Representative image for Iran's oil infrastructure.
Credit: Reuters Photo
Barclays on Thursday said it expects a potential Israeli attack on Iran's oil infrastructure to result in a sustained 1 million barrels per day of disruption in supplies that could drive oil prices at least $15 per barrel higher.
"A potential Israeli attack on Iranian oil upstream or export infrastructure poses a binary outcome for oil markets, as it could reduce the elevated spare capacity overhang on prices while inducing a significant geopolitical risk premium," the bank said in a note.
Barclay's fair value estimate for Brent next year is $85 per barrel.