Oil prices may rise significantly if Iran joins Hamas’ assault against Israel, according to Pioneer Natural Resources CEO Scott Sheffield.
Sheffield warned on CNBC’s “Squawk Box” on Wednesday that there would be a significant increase in oil prices if Iran joined the conflict.
The U.S. has labelled Hamas, a Palestinian Islamist organisation, as a terrorist organisation. Iran is a significant oil producer and a big supporter of Hamas. Crude supplies around the world, which have been reduced recently by Saudi Arabia and Russia, might be seriously threatened by a larger battle.
WTI crude dropped by 78 cents, or 0.91%, to $85.19 on Wednesday, while Brent crude traded little lower at $86.93 a barrel. Concern that the dispute between Israel and Hamas would spread into a larger battle caused Brent and WTI to increase by more than $3.50 on Monday.
“I think it will be up to [Prime Minister Benjamin] Netanyahu. Accordingly, it relies on the strength of his case against them and his decision to take action, Sheffield added.
As missiles fall and hostilities enter their fifth day, the death toll in Israel is growing. The Israeli military claimed to be gathering soldiers close to the Gaza Strip.
There is no indication that Iran was involved, according to U.S. Secretary of State Antony Blinken, who is scheduled to be in Israel on Thursday.
Exxon Mobil announced on Wednesday that it has reached an agreement to acquire shale rival Pioneer Natural Resources for $59.5 billion in an all-stock transaction, or $253 per share.
Source (CNBC)
